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Fitch kept France's sovereign rating at A+ but cut its outlook from stable to negative, citing weaker growth, higher borrowing costs and a larger deficit. The government reiterates the "absolute necessity" of adopting a budget by year-end.
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The government lowered its 2026 growth forecast from 0.7% to 0.5% after the economy contracted 0.2% in the first quarter and stagnated in the second, while INSEE cut its own projection to 0.4%, warning the economy was "losing ground."
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