France’s debt climbs to highest since 1995

France's national debt has reached an all-time high, surpassing the 119.3% of GDP mark in 2026 and rising further to 121.7% in 2027, according to the country's finance ministry. This alarming figure marks a significant increase since the last recorded level in 1995, signaling a growing financial burden on the nation. The ministry's source attributes the surge to a persistent deficit that remains well above the EU's 3% GDP limit, currently standing at an estimated 5.4% for the current year.

The situation has raised concerns as France is currently under special EU monitoring due to its high deficit figures. Prime Minister Sebastian Lecornu's draft 2027 budget includes proposed €54 billion (US$62 billion) worth of adjustments and cuts, but many sensitive measures, such as pensioner tax reductions, will be decided by parliament in the run-up to elections.

Despite the mounting debt, France anticipates a slight reduction in its deficit to 5% next year, coinciding with the presidential and parliamentary elections.