French Minister Says Country Has 'Total Confidence' in U.S. Economy
France has "total confidence" in the solidity of the U.S. economy, Economy Minister Francois Baroin told Agence France Presse on Saturday, the first European minister to react to the U.S. rating downgrade.
"France has total confidence in the solidity and the fundamentals of the U.S. economy, and the American government's determination to implement the plan (to reduce the deficit) approved by Congress this week," he said.
Standard & Poor's cut the United States' top-rank triple-A rating down a notch, to AA+, for the first time ever on Friday, technically signalling that the country's reliability for paying its debts had decreased.
"Standard & Poor's rating is only one element in the appreciation of the United States financial situation. I note that the two other key agencies -- Moody's and Fitch -- confirmed the triple-A rating. It raises questions on taking a decision on the basis of figures which were not consensual," Baroin said.
According to the U.S. Treasury, S&P made a mistake that inflated the projected deficit to the tune of $2 trillion.
For Baroin, S&P's decision nevertheless "confirmed that all major developed countries today are faced with the same priorities: bolster growth and reduce public and private debt."
"The G7 finance ministers are in constant touch to monitor the situation on the markets and discuss what action is necessary," he concluded.
Source: Agence France Presse
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