• France's news in English

France 'not worth its AAA rating': report

Clea Caulcutt · 15 Nov 2011, 10:08

Published: 15 Nov 2011 10:26 GMT+01:00
Updated: 15 Nov 2011 10:08 GMT+01:00

Facebook Twitter Google+ reddit

France shouldn't enjoy AAA status given its low growth prospects and dire public accounts, says a report published by think tank The Lisbon Council and German bank Berenberg Bank.

France’s economy is rated 13th out of the 17 eurozone countries, far behind other AAA-rated countries such as Germany, Finland or the Netherlands. France's economic prospects are so mediocre, it shouldn’t be considered a leading economy, says the report's Euro Plus Barometer.

France was rated between Spain and Italy, two countries struggling to finance their debt and reassure investors.

On Tuesday, the gap between German and French 10-year borrowing rates widened to a record 172.6 basis points, a sign that investors are wary of buying French bonds. This means France has to pay twice as much as Germany to borrow.

Last week, the ratings agency Standard & Poors issued a statement saying it was stripping France of its AAA status. It later backtracked, denied the downgrade and said it was an error on its website.

Story continues below…

The Lisbon Council report concludes that France should usher in crucial reforms to keep its AAA rating, ideally before the presidential elections in April.

Clea Caulcutt (news.france@thelocal.com)

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Calais migrants given mixed reception in French towns
Photo: AFP

Some in France have shown solidarity with their new guests, while others have made it clear they are not welcome.

Lonely Planet says Bordeaux is world's best city to visit
The fantastic new Bordeaux wine museum. Photo: AFP

After The Local France, the Lonely Planet has followed suit by urging everyone to head to Bordeaux in 2017.

Jungle shacks set ablaze and torn down as camp razed
All photos: AFP

IN PICTURES: The razing of the Jungle has finally begun.

Frenchwoman finds WW1 grenade among her spuds
Photo: AFP

It could have been a very explosive family dinner.

Refugee crisis
What rights to a future in France for Calais migrants?
Photo: AFP

What does the future hold for the migrants of the Jungle? Can they work or claim social benefits or travel freely inside Europe?

Pampers nappies 'contain carcinogenics': French study
Photo: Robert Valencia/Flick

The substances in the nappies are meant to prevent skin irritation but are cancerous, the study concludes.

France to scrap special prison wings for dangerous jihadists
Photo: AFP

The experiment has been ditched.

Myth busting: Half of French adults are now overweight
A model at the Pulp Fiction fashion show in Paris that represents society's diverse spectrum . Photo: AFP

Hold on, aren't the French all meant to be finely toned specimens with not an ounce of fat on them?

France poised to send bulldozers into Calais Jungle
Photo: AFP

As hundreds of migrants leave, the bulldozers are set to tear down the sprawling Calais shanty town on Tuesday.

UK to spend €40 million on securing Calais border
Photo: AFP

Britain spending big on security in Calais.

The annoying questions only a half French, half Brit can answer
Sponsored Article
Last chance to vote absentee in the US elections
Forget Brangelina's chateau - here are nine others you've got to see
The must-see French films of the millennium - Part One
How life for expats in France has changed over the years
Why Toulouse is THE place to be in France right now
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
Welcome to the flipside: 'I'm not living the dream in France'
Do the French really still eat frogs' legs?
French 'delicacies' foreigners really find hard to stomach
French are the 'world's most pessimistic' about the future
Why the French should not be gloomy about the future
This is the most useful French lesson you will ever have. How to get angry
Why is there a giant clitoris in a field in southern France?
French pastry wars: Pain au chocolat versus chocolatine
Countdown: The ten dishes the French love the most
Expats or immigrants in France: Is there a difference?
How the French reinvented dozens of English words
jobs available