LONDON, Aug 26 (Reuters) - A collapse of the French
government was the most likely outcome of the country's current
political turmoil and would be negative for its credit profile,
European ratings agency Scope said on Tuesday.
Three main opposition parties said they would not back a
confidence vote which Prime Minister Francois Bayrou on Monday
called for September 8 over his plans for sweeping budget cuts.
The uncertainty weighed on French markets on Tuesday,
sending the risk premium over German debt sharply higher.
The political impasse undermines France's plans to reduce
its budget deficit to 4.6% next year, from 5.8% in 2024, Scope
analysts said. Instead, Scope expects the deficit to only
decline to 5.3% next year.
That will raise France's debt-to-output ratio to around 122%
by 2030 from 113% last year, higher than the government's 117%
target.
Scope will next review France's rating on September 26.