Sarkozy urges courage after ratings blow

Standard & Poor’s decision to lower France’s rating to AA+ was a blow to the country’s self-image and to Mr Sarkozy’s prospects of re-election, just three months before the first round of voting in the presidential poll. It could also have far-reaching effects for Europe, potentially raising the borrowing costs for the bailout fund used to rescue struggling members of the eurozone.

The move was one of a spate of downgrades of countries that use the euro which the agency said reflected the absence of a sufficiently bold political solution to the crisis.

The French president has kept silent about Friday’s downgrade thus far, instead trotting out his finance minister and prime minister to respond to the move.

While he also avoided any mention of the downgrade in his first public appearance since it was confirmed, Mr Sarkozy said during a speech in central France: “This is a test and since it is, we have to confront it, we have to resist, we have to fight.”

“We have to demonstrate courage, we have to demonstrate calm.”

Socialist presidential candidate Francois Hollande, who was topping the polls even before the downgrade, has said the move was a result of Mr Sarkozy’s failed policies.

“You don’t respond to a crisis of this magnitude with agitation, outbursts and polemics,” Mr Sarkozy retorted.

The latest string of credit downgrades in the eurozone requires Britain to “redouble our efforts” to boost economic growth, Foreign Secretary William Hague urged yesterday.

He claimed the renewed questions over the credit-worthiness of countries, including France, demonstrated the importance of the coalition Government’s deficit reduction strategy.