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

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.