In a June 10 report, S&P stated: “If French authorities do not follow through with their reform of the pension system, make additional changes to the social-security system and consolidate the current budgetary position in the face of rising spending pressure on health care and pensions, Standards & Poors will unlikely maintain its AAA rating.”
Despite France’s current short-term stability in the eyes of S&P, a number of analysts and financial institutions have a negative view of France.
Paul Donovan, London-based deputy head of global economics at UBS AG told Bloomberg, “France is not, in my view, a AAA country... France can’t print its own money, a critical distinction from the US. It is not treated as AAA by the markets.”
For more: Where does France stand amid the financial crisis? - FINANCE - FRANCE 24
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