France gets fresh warning on finances


Ambitious reduction: Lecornu delivering a speech at the National Assembly in Paris. The initial draft bill he submitted to Parliament this month targets a reduction in the budget shortfall to 4.7% of economic output from 5.4% this year. — AFP

PARIS: Moody’s Ratings cut France’s credit outlook to negative from stable, adding to warnings on the country’s bloated public finances as a weakened minority government struggles to pass a budget. 

“The decision to change the outlook to negative reflects the increased risk that the fragmentation of the country’s political landscape will continue to impair the functioning of France’s legislative institutions,” the firm said in a statement last Friday.

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