S&P Global Ratings: Ratings On France Unaffected By The Presidential Election Outcome

S&P Global Ratings said today that the outcome of the French presidential elections should have no immediate impact on the ratings on France (unsolicited AA/Stable/A-1+).

On May 7, 2017, Mr. Emmanuel Macron was elected as the next president of the French Republic. Mr. Macron’s economic policy agenda during the election campaign included plans for reducing the currently high tax pressure on households and companies; improving labor market outcomes by adding more flexibility to the wage setting mechanism and reducing the cost of labor; a €50 billion investment plan during the five-year presidential mandate; and further progress in economic and budgetary integration of the eurozone, reflecting his pro-European perspective. The capacity of Mr. Macron to implement the abovementioned economic policy plans will, however, depend on the outcome of the legislative elections on June 11 and 18, 2017, and his ability to find sufficient support in the new parliament.

The baseline expectation is that the next government of France is likely to continue or even accelerate the current moderate pace of reform, with a focus on unblocking the labor market and generating better growth outcomes. This expectation is also reflected in our outlook revision to stable from negative in October 2016