Pierre Moscovici, the president of the High Council of Public Finances (HCFP) and president of the Court of Auditors, warned that the markets are starting to pay attention to France following the note from Fitch and the presentation of the 2025 budget. Fitch maintained France’s AA- rating but placed it under a “negative outlook” after the budget presentation. Moscovici emphasized that this rating indicates that France is not bankrupt like Greece was in 2012, but that the markets are starting to question the country’s future creditworthiness and credibility. He stressed the importance of the budgetary effort to prevent further risks and rising costs.
Moscovici also stressed the need to understand what happened in the management of the 2024 budget to prevent similar issues in the future. He emphasized that this understanding is not about assigning blame to specific individuals but rather about ensuring that mistakes are not repeated. Moscovici announced that the Court of Auditors will play a role in analyzing the events of 2024 and providing an in-depth assessment. He highlighted the importance of establishing the truth, presenting facts, and exploring the processes involved in the budget management of that year.
In May, Moscovici mentioned that there will be a detailed analysis of the events surrounding the 2024 budget to provide clarity and transparency about what occurred. He emphasized the importance of understanding the situation objectively and using informed analysis to prevent similar issues in the future. Moscovici suggested that if necessary, the Parliament may opt to expedite the investigation process through a parliamentary inquiry commission. This proactive approach aims to address any potential budgetary discrepancies promptly and ensure accountability.
The consequences of not addressing these issues promptly could lead to increased risks and costs for France in the financial markets. Moscovici highlighted the potential for a snowball effect if the markets continue to view France with suspicion, which could have repercussions on the country’s financial stability. Therefore, he underlined the necessity of making efforts to maintain a strong credit rating and credibility in the eyes of investors and international markets to avoid negative outcomes.
Moscovici’s statements underscore the importance of proactive budget management and accountability in maintaining France’s financial stability and credibility on the global stage. By acknowledging the need to understand and address any past budgetary issues, he is emphasizing the government’s commitment to transparency and responsible fiscal governance. The upcoming analysis of the 2024 budget events will provide valuable insights into potential weaknesses in the financial system and help prevent similar issues in the future. Ultimately, Moscovici’s message is a call to action for ensuring sound financial practices and demonstrating a commitment to responsible budget management to secure France’s financial well-being.
