
French Downgrade: Red Crisis Flags in Paris
France’s political elite is out of time: they must form a sustainable government and start fiscal consolidation, or the country risks an economic crisis at least as severe as the one 15 years ago.

France’s political elite is out of time: they must form a sustainable government and start fiscal consolidation, or the country risks an economic crisis at least as severe as the one 15 years ago.

The French government is facing the same fiscal crisis as in 2012—but this time, the ECB won’t be able to help them.

Lecornu takes office as France faces record-low credit ratings and mounting fiscal challenges.

The move reflects decades of fiscal mismanagement and government overspending, outgoing Interior Minister Bruno Retailleau said.