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He said France was determined to continue to reduce its deficit, although the government recently won a reprieve from the European Commission in order to make budget cuts more slowly. The government had originally intended to bring its budget in line with the European limit of 3 percent of gross domestic product this year, but it will likely be closer to 4 percent. Fitch noted in its statement that, on the plus side, France's economy is diverse and its political stability is anchored by strong civil and social institutions. The country has a "track record" of stability in its financial system, including low and stable inflation, Fitch said.
Associated Press writer Sarah DiLorenzo in Paris contributed to this report.
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