France ratings fears put euro under pressure

THE Euro dropped this morning after market fears that France could face a downgrade of its AAA credit rating in the long term.

Fears were triggered after credit ratings agency Moody's found earlier this week that the country's rating was secure for now but could be under pressure in the future as uncertainty remains over its economic revival.

President Nicolas Sarkozy called an emergency summit meeting with prime minister Francois Fillon, finance minister Christine Lagarde and budget minister Francois Baroin to discuss the country's economic problems following the Moody's report.

The meeting, tomorrow (Friday) will discuss a new package of cuts, it is understood.

A market source said: "People are very jittery on the European markets. Although in the short term France’s rating looks safe it is beyond that which is causing concern."