France’s Public Debt Projected to Reach Record High as Budget Deficit Worsens
France’s public debt is set to rise to its highest level in nearly three decades as the country continues to struggle with a widening budget deficit, according to the Finance Ministry.
The ministry projected that France’s debt-to-GDP ratio will increase to 119.3 per cent in 2026 and further climb to 121.7 per cent in 2027, levels that are almost double the 60 per cent benchmark recommended under European Union fiscal rules.
Officials attributed the growing debt burden largely to the continued high budget deficit, which stood at 5.1 per cent of GDP last year and is expected to increase to 5.4 per cent this year. The government has set a target of reducing the deficit to 5 per cent next year.
France has remained under special monitoring by the European Union for the past two years due to its excessive deficit levels.
Prime Minister Sébastien Lecornu has proposed €54 billion in spending adjustments and budget cuts as part of efforts to restore fiscal stability ahead of the 2027 budget.
However, with presidential and parliamentary elections approaching, some key financial reforms will depend on decisions by lawmakers, adding uncertainty to the government’s deficit reduction plans.
