France’s Public Debt Set to Hit Record High as Deficit Remains Elevated

France’s public debt is expected to climb to 119.3% of gross domestic product (GDP) in 2026, putting the country on track for its highest debt level since current records began in 1995.

The French Finance Ministry said the debt ratio could rise further to 121.7% of GDP in 2027, as the government continues to deal with a large budget deficit. The projected levels are roughly twice the European Union’s reference limit of 60% of GDP.

The increase is being driven largely by persistent government budget deficits, with spending continuing to exceed revenues. France recorded a public deficit equivalent to 5.1% of GDP in 2025, while the government expects the gap to widen to 5.4% in 2026 before narrowing to about 5% in 2027.

The latest projections come as France faces increasing pressure to bring its public finances under control. Under EU fiscal rules, member states are expected to keep their annual budget deficits below 3% of GDP, although France has remained above that threshold and has been subject to enhanced European monitoring.

Official statistics show that France’s public debt already stood at €3.536 trillion at the end of the first quarter of 2026, equivalent to 117.5% of GDP. The debt increased by €75.6 billion during the quarter.

The rising debt burden has also increased attention on the cost of servicing government borrowing. Higher interest payments can place additional pressure on public finances, potentially leaving less room for government spending on infrastructure, social programmes and other priorities.

France’s debt ratio is also among the highest in the euro area. Eurostat data placed France at 117.6% of GDP in the first quarter of 2026, behind Greece and Italy but ahead of Belgium and Spain.

The government’s challenge is complicated by the country’s political environment and the need to secure parliamentary support for future budgets. Authorities are seeking to reduce the deficit while managing demands for public spending and maintaining economic activity.

If the latest projections materialise, France’s debt-to-GDP ratio will continue moving further away from the EU’s fiscal benchmark, making budget consolidation one of the major economic challenges facing the country.

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