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French govt collapse most likely outcome, negative for ratings, Scope says
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French govt collapse most likely outcome, negative for ratings, Scope says
Aug 26, 2025 7:50 AM

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.

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