Moody's sees no quick resolution of French political fragmentation

The ​outlook for ​France passing its ‌2027 budget ​is highly uncertain as a presidential ‌election approaches and likely political fragmentation afterwards will make fiscal consolidation no easier, Moody's ‌Ratings said on Friday. Moody's is due to ‌update its Aa3 rating on France On Oct. 23 and it currently has a ⁠negative ​outlook, ⁠meaning that the next move is more likely ⁠to be a downgrade.

"The ability of ​France's institutions to tackle its key policy ⁠difficulties despite the political fragmentation in parliament ⁠is ​the key factor we are assessing for the resolution of the ⁠negative outlook," it said in a ⁠note ⁠after the government presented its 2027 budget on Thursday.