France Debt Hits 119% of GDP as 2027 Election Plans Face Fiscal Pressure
France’s public debt has reached €3.596 trillion, or 119% of GDP, putting pressure on policymakers as they debate spending cuts, debt reforms and the 2027 budget.
France’s public debt has climbed to a record €3.596 trillion, equivalent to 119% of GDP, putting government finances at the centre of debate ahead of the 2027 presidential election. The debt ratio has risen sharply from 97.9% in 2019, before the COVID-19 pandemic.
Prime Minister Sébastien Lecornu is preparing the 2027 budget with plans focused on reducing the deficit through lower public spending. The approach has faced opposition, while left-wing politician Jean-Luc Mélenchon has proposed freezing French government bonds held by the European Central Bank. ECB President Christine Lagarde has rejected the proposal, saying it would violate EU rules governing central bank financing.
France has run budget deficits for decades, borrowing to cover the gap between government revenue and spending. The pandemic and subsequent energy crisis increased pressure on public finances, while higher interest rates have made borrowing more expensive.
Debt servicing now accounts for around 7% of the state budget, with annual interest costs expected to reach €77 billion. That has raised concerns about how much funding remains available for areas such as healthcare, education and pensions.
Credit-rating agencies have also highlighted France’s fiscal challenges, although their assessments differ. Scope downgraded France in September, citing rising debt and persistent deficits, while Fitch maintained an A+ rating with a stable outlook in August.
With competing proposals ranging from spending cuts to debt restructuring, France’s finances are likely to remain a major issue in the political debate ahead of 2027.
