{"text":[[{"start":7.48,"text":"Credit rating agency Fitch changed its outlook on France to negative in a surprise decision that came shortly after data showed that the economy unexpectedly contracted in the third quarter."}],[{"start":17.64,"text":"Fitch said late on Friday that it had changed its outlook on France from stable to negative in an out-of-cycle decision, although it maintained the country’s A+ rating. Its announcement cited “weaker growth, higher borrowing costs and a wider deficit” since it last reviewed the rating in August."}],[{"start":33.78,"text":"“These worsen debt dynamics from an already weak starting point,” Fitch said in a statement. “Persistent political fragmentation and a challenging social backdrop increase the difficulty of delivering sustained fiscal consolidation.”"}],[{"start":47.68,"text":"Fitch is now the most pessimistic of the three major rating agencies. S&P Global Ratings also rates France’s creditworthiness as A+, although it has a stable outlook. Last week Moody’s surprised investors by maintaining its credit rating at Aa3 with a negative outlook, one notch above its rivals."}],[{"start":65.92,"text":"The French economy, the Eurozone’s second-largest, shrank 0.1 per cent in the third quarter because of a steep rise in borrowing costs, high energy prices and growing political instability, the ECB said on Friday. The deterioration surprised economists, who had expected growth to remain positive, and piles pressure on the government to pass a deficit-reducing budget for 2027 in the coming months."}],[{"start":89.96,"text":"“This [Fitch] assessment confirms the absolute necessity of adopting a responsible budget by the end of the year, aimed at restoring public finances by reducing our deficit to 5 per cent,” finance minister Roland Lescure said, adding that the government is “determined to continue on a path of fiscal consolidation”."}],[{"start":107,"text":"Investors are increasingly worried about France’s ability to manage its growing debt pile, which is approaching 120 per cent of GDP, six months before fraught presidential elections in which the far right leads the polls. Yields on the benchmark 10-year sovereign bond are hovering around 5 per cent, while the spread over German yields — a key indicator of political strain — has widened to levels not seen since the Eurozone sovereign debt crisis in 2011."}],[{"start":132.56,"text":"Weeks of protests over education funding and the cost of living are set to continue this weekend, testing the government’s resolve to not revert to its usual method of calming social unrest by increasing spending."}],[{"start":145.24,"text":"Marches are scheduled to take place in cities across France later on Saturday, with authorities on high alert after protests on October 17 degenerated into widespread chaos and looting. Last weekend’s marches proceeded largely peacefully with a heavy police presence."}],[{"start":161.8,"text":"“A large share of public spending is politically difficult to reduce, while the already high tax burden leaves little scope for additional revenue-raising measures,” Fitch wrote."}],[{"start":171.28,"text":"However, it noted that France’s economy “remains supported by its large, wealthy and diversified economy, strong institutions, euro area membership and a resilient banking sector”."}],[{"start":187.72,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793444260_3729.mp3"}