A senior Fitch Ratings analyst said that France's budget proposal is a major attempt to curb the fiscal deficit, and failure to pass could have adverse consequences. Federico Barriga-Salazar, head of sovereign ratings at Fitch Western Europe, said in an interview this week that Treasury Secretary Roland Lescure's efforts to reduce the fiscal deficit to 5% of GDP next year are “substantial.” Barriga Salazar said, “All financial challenges remain, but this move is significant. If not implemented, it will cause some degree of market shock. The plan is huge and critical. The biggest question now is whether it can be approved in its current state.” The budget announced by Lescure at the beginning of this month envisages implementing measures totaling 43 billion euros to reduce the fiscal deficit and ease financial market concerns about the country's public finance situation.

A senior Fitch Ratings analyst said that France's budget proposal is a major attempt to curb the fiscal deficit, and failure to pass could have adverse consequences. Federico Barriga-Salazar, head of sovereign ratings at Fitch Western Europe, said in an interview this week that Treasury Secretary Roland Lescure's efforts to reduce the fiscal deficit to 5% of GDP next year are “substantial.” Barriga Salazar said, “All financial challenges remain, but this move is significant. If not implemented, it will cause some degree of market shock. The plan is huge and critical. The biggest question now is whether it can be approved in its current state.” The budget announced by Lescure at the beginning of this month envisages implementing measures totaling 43 billion euros to reduce the fiscal deficit and ease financial market concerns about the country's public finance situation.