French finance ministry expects record debt in 2026, reaching nearly 120% of GDP

France's debt is projected to soar to a record high of 119.3% of economic output in 2026, with a potential debt-to-GDP ratio of 121.7% in the following year, according to the country's finance ministry. This projection comes from a statement made to the High Council of Public Finances, an institution responsible for assessing the government's revenue and spending forecasts.

In 2025, France's debt-to-GDP ratio stood at 115.7%, marking a significant increase from the below-100% levels seen in 2019. The ministry also anticipates a budget deficit of 5.4% by the end of the year. Prime Minister Sebastien Lecornu has expressed confidence that the 2026 deficit will be well below 5.5%, but he is facing the challenging task of implementing a €54 billion ($62 billion) savings plan in his 2027 budget to prevent the deficit from spiraling out of control.

The cost of borrowing for France has risen to more than a full percentage point above Germany's rates, a first since the eurozone debt crisis. This has highlighted growing concerns among investors about the deterioration of France's financial situation ahead of upcoming elections.