Sounding the Alarm: France's Creditworthiness Falters
France's credit rating reduction serves as a cautionary signal for Germany, according to Peter Boehringer
The creditworthiness of France has taken a hit, with Moody's recently downgrading the country from Aa2 to Aa3. This downgrade comes after Standard & Poor's lowered France's rating last summer due to a steep state debt ratio of 112 percent of GDP. The fall of a proposed consolidation budget, proposed by transitional Prime Minister Barnier, in the National Assembly prompted the government's resignation.
Peter Boehringer, deputy federal spokesman of the AfD and spokesman for the federal expert committee on "Money and Currency Policy," voiced his concerns:
"France continues to be Europe's problem child. It seems incapable of rectifying its financial issues. Even the insignificant deficit procedure initiated in Brussels won't help. Instead, the Eurozone might once again serve as a means for indirectly monetizing the debt, or we could witness renewed calls for further EU community debts. This debt mutualization is sure to harm Germany, as we still bear the heaviest EU contributions and face the greatest risk for ECB bond purchase programs."
A potential danger looms if Germany, following a rumored relaxation of the debt brake by CDU leader Merz, were to come under rating agency scrutiny. The AAA rating is no longer a guarantee, given the escalating deindustrialization of Germany and the mounting debt. Rating agencies may also attribute "EU debts" like the EU Green Deal to individual nations. As Boehringer states, "there are no 'ownerless,' harmless EU debts!"
This downgrade serves as a warning in two key ways. Firstly, it signals that the 15-year-old Eurozone crisis is not yet over, and that the artificial currency will require ongoing rescue in the future. Secondly, it hints that Germany's creditworthiness might be at risk in the future, with far-reaching consequences for interest rates, the state budget, and all citizens.
Only the AfD has persistently advocated for an orderly exit from the Eurozone, an end to the green deindustrialization policy, and a serious consolidation of state finances for years. Germany, along with the EU, needs reforms that will foster a competitive economy in the intensifying global market. Unfortunately, the necessary resolve is lacking, not only in France.
Press contact:Alternative for GermanyFederal OfficeEichhorster Weg 80 / 13435 BerlinPhone: 030 - 220 23 710Email: [email protected]
Sources:* AfD - Alternative for Germany* news aktuell* Reuters* The Guardian* Financial Times* CNN Business* Bloomberg
- The downgrade of France's creditworthiness by Moody's and Standard & Poor's points to ongoing challenges within the Eurozone, particularly in the finance industry, and emphasizes the need for policy-and-legislation changes in Europe, particularly business reforms to address the escalating deindustrialization and mounting debt.
- Peter Boehringer, deputy federal spokesman of the AfD, warns that the potential relaxation of the debt brake by CDU leader Merz in Germany could lead to rating agency scrutiny and a possible downgrade of the country's creditworthiness, with significant implications for interest rates, the state budget, and all citizens.
- The AfD, in the midst of the ongoing Eurozone crisis and concerns about France's and potentially Germany's creditworthiness, continues to advocate for an orderly exit from the Eurozone, an end to the green deindustrialization policy, and a serious consolidation of state finances – reforms they believe are crucial for fostering a competitive economy in the general-news-driven global market.
