Editorial: Le Monde

• The 2025 finance bill is in dispute amidst parliamentary discord and France's economic prospects are darkening.
• The rate of growth and job market are slowing, and consumer confidence is falling.
• The financial rating agency Moody's has applied a 'negative outlook' to its credit rating of France, implying a possible future downgrade.
• The French economy is starting to feel the effects of economic difficulties in Germany, its main trading partner.
• Uncertainties relating to tax increases and economies are diminishing confidence and inhibiting consumption and investment.
• The public deficit has soared to 6.1% of national GDP and the debt to 112%, with ten-year interest rates surpassing those of Portugal and nearing Italy's.
• Moody's and the IMF have expressed doubts as to whether Michel Barnier's goal of reducing the deficit to 5% in 2025 is realistic.
• A further downgrade of France's credit rating could deter many investors, potentially leading to higher interest rates.

Conclusion: France is on the brink of a vicious circle which would increase the debt burden and limit its room for manoeuvre. It is imperative that politicians show responsibility and work on a credible budget to handle the unsustainable imbalances.

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