France’s hung parlt. risks credit rating – S&P warns

S&P Global cautioned on Monday that France’s hung parliament could complicate policymaking and jeopardise its credit rating if economic growth remains weak.

The unexpected left-wing surge in Sunday’s parliamentary elections thwarted Marine Le Pen’s far-right aspirations, leading to a fractured parliament and challenging government formation.

S&P emphasised that France’s ‘AA-/A-1+’ credit rating is at risk if economic growth significantly underperforms or if the country fails to reduce its budget deficit. Increased government interest payments, surpassing current projections, could also pressure France’s credit rating.

Attribution: Reuters.