Le Maire doubles down on reform plans after Fitch cuts France’s credit rating

French Economy Minister Bruno Le Maire vowed that the government will push ahead with structural reforms after Fitch Ratings pointed to social unrest over the planned pension reforms in lowering its assessment of France’s credit rating.

“I believe that the facts invalidate the assessment by the Fitch agency,” Le Maire told AFP on Saturday.

Citing the government’s reform plans for pension and unemployment benefits, Le Maire added that “we are in a position to pass structural reforms for the country … And we will continue to pass structural reforms for the country.”

Le Maire said the government of French President Emmanuel Macron is planning a “whole series of reforms” that will speed up “the transformation of France’s economic model.” A green industry plan, which the government will present “in a few days,” will allow France to “open new industrial sites and create new jobs,” he said.

Fitch on Friday downgraded France’s rating by one notch to AA- from AA. “Social and political pressures illustrated by the protests against the pension reform will complicate fiscal consolidation,” the agency said.

“Political deadlock and (sometimes violent) social movements pose a risk to Macron’s reform agenda and could create pressures for a more expansionary fiscal policy or a reversal of previous reforms,” it added.

The government has faced strong protests after adopting a pension reform that will raise the legal retirement age from 62 to 64. Trade unions plan to continue their demonstrations with a “massive mobilization” on Monday.