
France’s Credit Downgrade Triggers Crisis Flashbacks
The French government is facing the same fiscal crisis as in 2012—but this time, the ECB won’t be able to help them.

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

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

The U.S. government has suffered its second credit downgrade. Given the reaction from the Biden administration, we can safely predict: this is only the beginning.

France is at a fork in the road, where her political leaders have shrinking maneuverability, where they are running out of time, and where they cannot afford to repeat the mistakes of the past.

The downgrade by Fitch is a slap in the face for the French government, and especially for Emmanuel Macron.