Pierre Moscovici, the President of the High Council of Public Finances (HCFP) and President of the Court of Auditors, warned that after Fitch’s rating and the presentation of the 2025 budget project, “the markets are starting to pay attention to us.” Fitch maintained France’s AA- rating on Friday, but placed it under a “negative outlook” following the budget proposal. Moscovici emphasized that this rating indicates that France is not in default like Greece in 2012, but that the markets are beginning to scrutinize the country. He stressed the importance of the budgetary effort to maintain credibility and prevent potential negative consequences such as increased borrowing costs or a snowball effect.
Moscovici also highlighted the need to understand what happened in the management of the 2024 budget. He stated that it is crucial to examine the events of that year, not to assign blame to specific individuals, but to prevent similar issues from occurring in the future. Moscovici announced that the Court of Auditors will play its role in conducting a detailed analysis of the 2024 budget in May. He emphasized the importance of establishing the truth, presenting the facts, and exploring the processes involved in the budget management to inform future decision-making.
The President of the Court of Auditors emphasized the necessity for transparency and accountability in financial management to maintain France’s credibility and uphold its financial stability. Moscovici underscored the importance of establishing a clear understanding of the events surrounding the 2024 budget to prevent similar issues in the future. He suggested that the Parliament may choose to expedite this process by forming a parliamentary inquiry commission to investigate the matter further. Moscovici stressed the significance of conducting a technical, objective, and informed assessment of the events to provide clarity on the situation and inform future actions.
Moscovoci emphasized that further scrutiny by the markets could lead to increased risks and costs for France if credible and effective measures are not taken to address the situation. He highlighted the importance of the budgetary effort to demonstrate France’s commitment to fiscal responsibility and stability. Moscovici warned that failure to address the concerns raised by Fitch and the markets could have negative consequences for France’s financial standing. He urged for a thorough examination of the events surrounding the 2024 budget to prevent similar issues in the future and ensure transparency in financial management.
In conclusion, Pierre Moscovici’s statements underscore the importance of addressing the concerns raised by Fitch and the markets regarding France’s financial stability and credibility. He emphasized the need for a comprehensive examination of the events surrounding the 2024 budget to prevent similar issues and maintain transparency in financial management. Moscovici highlighted the potential risks and consequences of failing to address the concerns raised by Fitch and stressed the importance of taking proactive measures to address these issues. Overall, Moscovici’s remarks serve as a reminder of the importance of fiscal responsibility and transparency in financial management to uphold France’s financial stability and credibility.
