French public debt to reach new record level in 2027, exceeding 120% of GDP
The government submitted its draft budget bill to the High Council of Public Finances on Friday. The bill provides for new tax increases, which are set to be the main factor in reducing the budget deficit. The public debt, meanwhile, will continue to rise.
France anticipates a record-high national debt of approximately 119.3% of its economic output in 2026, with projections suggesting it could reach 121.7% in 2027, according to the country's finance ministry. This projection was disclosed in a statement to the High Council of Public Finances, an influential body that assesses government revenue and expenditure forecasts.
In 2025, France's debt-to-GDP ratio stood at 115.7%, while it was below 100% in 2019. The ministry further forecasts a budget deficit of 5.4% for the current year.
Prime Minister Sebastien Lecornu anticipates that the 2026 deficit will be substantially below the projected 5.5%. To curb the escalating deficit, Lecornu has proposed a €54 billion ($62 billion) austerity measure for the 2027 budget, but faces significant challenges in implementing these cuts through a politically fragmented parliament, amidst growing voter dissatisfaction over rising living costs.
The cost of borrowing for France on the bond markets has surged to more than a full percentage point above Germany's rate, signaling investor apprehension over the nation's mounting fiscal burdens as it heads towards upcoming elections.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
