France's debt climbs to highest level since 1995

France's national debt has reached its highest level since 1995, surpassing 119.3% of the country's GDP in 2026 and 121.7% in 2027, according to the finance ministry. The ministry attributed the increase to a persistent high deficit, which has been forecasted to reach 5.4% of GDP this year, double the EU's reference limit of 3%.

The debt figures mark a record since the state statistics agency INSEE began tracking debt levels under the current methodology in late 1995. The rise in France's debt is deemed an automatic consequence of the deficit. The country had been under special EU monitoring due to its high deficit figures. Prime Minister Sebastian Lecornu announced plans for adjustments and cuts worth €54 billion in the 2027 budget, but left some more sensitive measures to the parliament for decision-making, including a proposal to reduce tax breaks for pensioners.

The French economy has been experiencing a slowdown since the third quarter of last year, attributed to weak consumer spending and energy price surges due to the US-Israeli war against Iran.