France's public debt soars to a record 119% of GDP

France's public debt has surged to a record high of 3,595.5 billion euros, or 119% of its GDP, according to the National Institute of Statistics and Economic Studies (Insee). This figure is the highest recorded since 1946, a time when the country was still recovering from the aftermath of World War II.

In just two quarters, the debt increased by 59.6 billion euros, following a rise of 75.8 billion in the first quarter. The debt of the central government and the social security system grew, while that of local authorities declined. The government had previously warned that public debt would reach 121.7% of GDP in 2027, which is more than double the European limit of 60%.

With interest rates rising, the cost of servicing the debt has become an increasing burden. In 2026, France had to pay around 79 billion euros annually to its creditors. Recent market conditions have worsened, with investors demanding interest rates near 5% for lending to the state over ten years, a level not seen since the 2008 global financial crisis. As a result, interest payments are expected to increase further in 2027, reaching 91 billion euros.

The growing debt servicing costs have complicated the development of the 2027 budget bill, which is due to be presented on October 1. The proposed budget aims to reduce the public deficit to 5% of GDP, a year later than initially planned. However, the presidential campaign may jeopardize this target, as it could freeze any structural reforms. Moreover, if interest rates continue to rise and increase the state's debt cost, the upcoming budget bill may have limited real impact.