Rating agency S&P sends debt warning to US, France and other top economies

The United States, France and major economies are unlikely to halt the rises in their debt levels in the next few years, credit rating firm S&P Global warned this week.

The assessment comes ahead of upcoming elections in the US, Britain and France where governments are pledging to improve economies, social services and voters’ daily lives.

“We estimate that –for the US, Italy, and France– the primary balance would have to improve by more than 2 per cent of GDP cumulatively for their debt to stabilize; this is unlikely to happen over the next three years,” S&P said in a report.

“In our view, only a sharp deterioration of borrowing conditions could persuade G7 governments to implement more resolute budgetary consolidation at the present stage in their electoral cycles.”