Credit rating agency Moody's changed France's outlook to "negative" from "stable" on Friday, while maintaining its sovereign credit rating at Aa3, citing increased risks from the fragmentation of the country's political landscape.
Moody's said in an announcement that the political instability risks hampering the French government's ability to address key policy challenges such as an elevated fiscal deficit, rising debt burden, and durable increase in borrowing costs.
France's public debt climbed further in the second quarter of this year, reaching approximately 3.4 trillion euros, accounting for 115.6 percent of the country's gross domestic product (GDP), according to data released by France's National Institute of Statistics and Economic Studies (INSEE) in September.
France aims to cut the budget deficit to 5.4 percent of GDP in 2025, and further lower it to below 5 percent by 2026.
Earlier this month, rating agency S and P Global downgraded France's sovereign credit rating from AA- to A+, citing uncertainty on the country's finances remains elevated, which would affect the French economy by dragging on investment activity and private consumption, and therefore on economic growth.
In September, rating agency Fitch also downgraded France's long-term sovereign credit rating from AA- to A+.
Moody's lowers France's outlook to "negative"
Moody's lowers France's outlook to "negative"
The "soft landing" of the China-EU electric vehicle case will greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment, a spokeswoman of the Ministry of Commerce (MOC) said at a press briefing in Beijing on Thursday.
He Yongqian, the spokeswoman, made the remarks after China and the European Union (EU) agreed on the necessity of providing general guidance on price undertakings for Chinese companies exporting battery electric vehicle (BEV) passenger cars to the EU.
"China and the EU simultaneously announced on Monday that they had achieved positive outcomes following multiple rounds of consultations on the EV case, a development that has drawn wide attention at home and abroad. Industry players from both sides have 'highly welcomed and fully endorsed' the outcome, saying the 'soft landing' of the case is expected to greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment. Some EU politicians have described it as a positive step toward building a sustainable China-EU trade relationship, and said it demonstrated that resolving trade differences through partnership remains feasible," she said.
"Against the current international backdrop, China and the EU, acting in a spirit of mutual respect and within the framework of WTO rules, have properly addressed the EV case, which is of significant positive importance. The outcome will not only contribute to the sound development of China-EU economic and trade ties and help safeguard the stability of the global automotive industrial and supply chains, but will also send a clear and strong signal that both sides are willing to uphold a rules-based international trading order, setting a good example for countries to resolve differences through dialogue and consultation and injecting greater certainty and positive energy into global economic growth," she said.
"China appreciates the spirit of dialogue showed by the EU side and stands ready to work with the EU, building on the current positive outcomes, to further implement the consensus reached by the leaders of the two sides, maintain dialogue and communication, and support stable industrial and supply chains on both sides, continue to deepen cooperation on the basis of market principles, and make active contributions to the global green transition," she added.
"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman
"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman
