France’s credit profile is derived from its large & diversified economy, benefits from being part of the European monetary union, and strong institutions. Strong service exports and a well-developed financial system also provide support. However, despite these strengths, France faces challenges from a high level of government debt, poor fiscal track record, an ageing population, and high net social benefits.

Going forward, France’s ability to improve its fiscal position, mainly by improving spending efficiency, is a key monitorable.