France's economy is resilient but constrained by high public deficits and political deadlock. Growth is expected to recover modestly, but weak fiscal consolidation and legislative issues are structural concerns. The credit rating agency KBRA downgraded France's rating to AA- due to high deficits. Growth is slowing, debt is rising, and fiscal consolidation is limited ahead of the 2027 election. Political fragmentation hinders fiscal progress, with key reforms delayed. Despite high government revenue, rising debt servicing costs and structural spending pressures remain challenges. However, France retains strong market access, which offsets near-term risks. Teljes cikk (Euronews.com)