French Debt Record
France Public Debt Hits Record 119 Percent of GDP Amid Political Pressure
Anonymous
France’s public debt reached a record nearly €3.6 trillion at the end of June, equal to 119% of GDP, intensifying investor concerns and pressure on Prime Minister Sébastien Lecornu ahead of the 2027 presidential election. Lecornu plans to propose €54 billion in savings in the 2027 budget and reduce the deficit, but his minority government faces a difficult parliamentary fight as growth weakens and the deficit remains well above the EU’s 3% limit. Radical-left candidate Jean-Luc Mélenchon’s proposal to cancel French bonds held by the European Central Bank drew criticism, with ECB President Christine Lagarde saying it would violate EU rules.
Key Points
1
France’s debt rose by €59.6 billion in the three months to the end of June, a 2% quarterly increase.
2
The 119% debt-to-GDP ratio is the highest since 1946; unlike the earlier postwar peak or the 2021 pandemic-era record, the current rise is not explained by a pandemic or war in France.
3
The government expects public debt to climb further, to 121.7% of GDP next year, while forecasting deficits of 5.4% this year and 5% next year.
4
Lecornu is expected to seek a compromise with the Socialists to get the budget through parliament, but radical spending cuts are considered unlikely ahead of the April 2027 presidential election.
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