Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Exclusive: Fabius warns of further sanctions against Russia

    Read more

  • Experimental Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    Read more

  • Pakistan army to mediate between PM, protesters

    Read more

  • In pictures: Billions of locusts invade Madagascan capital

    Read more

France

Budget minister says keeping France's AAA credit rating a 'stretch'

Text by News Wires

Latest update : 2010-05-31

France’s Budget Ministry on Sunday said the government remained “committed” to preserving the country’s AAA credit rating after its head, Budget Minister François Baroin (pictured), described the objective as “a stretch”.

REUTERS - France's Budget Minister Francois Baroin said on Sunday the objective of keeping the country's AAA rating was "a stretch" and had an impact on economic policy decisions related to cutting the deficit.
 
In an interview on Canal+ TV, Baroin was asked whether France's plans to tackle its ballooning deficit had been announced in order to keep its AAA credit rating, which is the highest rating issued by ratings agencies.
 
He replied: "The objective of keeping the AAA rating is an objective that is a stretch, and it is an objective that, in fact, partly informs the economic policies we want to have."
 
Contacted by Reuters, the Budget Ministry later clarified that the target was "a demanding (objective) which we're committed to."
 
Talks are taking place on pension reform -- a key part of the plan to cut the deficit -- and France has frozen central government spending barring pensions and interest payments between 2011 and 2013.
 
France is also considering introducing a constitutional amendment that would set binding budget deficit limits.
 
Baroin added: "We must maintain our AAA rating, reduce our debt to avoid being too dependent on the markets, and we must do this for the long-term."

Fitch Ratings said on Friday the recently stepped-up dialogue in France was an important first step in addressing France's fiscal deficit.
 
France has forecast its deficit will come in at 8 percent of GDP this year, and aims to bring it down to within the European Union's 3 percent limit by 2013.
 

Date created : 2010-05-31

COMMENT(S)