The rating agency Fitch Ratings yesterday downgraded the creditworthiness of the French public sector by one level, to the level of “AA-“, mainly citing the recent social tensions, which according to it will burden the possibility of reducing the budget deficit and the public debt.

“Political deadlock and social mobilizations (sometimes violent) pose a risk to his reform agenda [σ.σ. προέδρου της Γαλλίας Εμανουέλ] Macron and could create pressures for a more expansionary fiscal policy, or a reversal of previous reforms,” ​​the house said in the press release it released.

The French government recently passed a controversial reform of France’s pension system, notably raising the retirement age to 64 from 62, which has sparked escalating mass protests and protests.

The reform has sparked “protests and strikes across the country and is likely to strengthen radical and anti-establishment forces,” said the rating agency, which until yesterday placed France at the “AA” level with a negative outlook.

The new rating is ‘AA–’ with a stable outlook.

Fitch is the first of the so-called big three rating agencies to downgrade France’s sovereign debt following the pension reform.

French Economy and Finance Minister Bruno Le Maire expressed his displeasure on Friday at Fitch’s “pessimistic assessment”, judging that the rating agency “underestimates the effects of the reforms”, especially that of the pension system.

After reaching 4.7% of GDP in 2022, France’s public deficit is expected to rise to 4.9% this year, before starting to decline from 2024, Mr Macron’s government forecast in the stability program released last week. days, during which France will return within the European fiscal limits in 2027.

Fitch predicts that France’s deficit will reach 5% of GDP this year.