France’s public debt at a record third quarter production rose 75.8 percent, government data showed Wednesday, one week after Paris on your credit standing is a warning.
A strong message from the Statistical Institute INSEE, Fitch Ratings after the government’s tough measures to curb state spending if it wants to maintain its top-grade credit rating data from the new loan.
European Union countries, France rarely go above that is alone among major debt, are 2008 and 2009 for heavy spending to deal with a serious recession later, and now face pressure on their sovereign ratings.
Greece has suffered this month, Fitch downgrades the sovereign and has two other agencies, Moody’s and Standard and Poor.
In November, Fitch downgraded Ireland against Spain in January, while Standard and Poor’s action was similar.
Fitch said the ratings last week with top credit was for control of all major governments, particularly Britain, Spain and France targeting.
“Britain, Spain and France are declining, particularly in financial and budgetary challenges facing them over the years accelerate and be more credible fiscal consolidation program, vocal,” the agency said.
Is “not so much pressure on their sovereign ratings will increase” said.
France’s third quarter gross domestic product ratio of debt to 1.9 points from the second quarter was 75.8 percent, well over 60 per cent stipulated in the Maastricht Treaty established the eurozone’s financial base.
French government has forecast that the ratio by the end of 2009 to reach 77.9 per cent and 84 per cent in 2010 will be.
July to September period from the second quarter, 29.4 billion euros in debt rose to a record 1.457 trillion euros (2.1 trillion dollars).
Said that credit growth in the third quarter, INSEE mainly to finance the state budget deficit was.
President Nicolas Sarkozy has called for a national conference next month, both credit and public finance measures to prevent the annual loss in its commitments to respect the rules eurozone France is capable of.
Public deficit recorded level, 8.2 percent of GDP in 2010 to 8.5 percent expected this year and is heading towards.
European Union’s executive commission said France is 3.0 percent for 2013 to reduce the lack of consistent rules of eurozone.
French government initially described as such a time frame is unrealistic but so far agreed to comply.
But that 2013 deadline only if it respects the strong growth in 2011, especially as a tax increase has been ruled out but may return.
Said Tuesday that the economy INSEE France emerged from recession in the second after 0.3 percent increase in third quarter.
Overall, 2009 production is forecast to contract by 2.25 percent.
PM’s economy in 2010 Francois Fillon said an increase of 1.5 percent, though the budget bill is sent to Parliament his administration was based on an estimate of only 0.75 percent.