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France’s public debt will climb to its highest level since 1978 this year due to a swelling deficit, the country’s finance ministry announced on Saturday.
Ministry sources project that public debt will reach 119.3 per cent of GDP in 2026 and 121.7 per cent in 2027—more than double the European Union’s 60 per cent reference threshold.
Officials called the rising debt an “automatic” consequence of persistent overspending, solidifying France’s position as the eurozone’s third most indebted nation behind Greece and Italy.
The widening deficit continues to breach EU regulations, which limit annual shortfalls to three per cent of GDP.
After posting a 5.1 per cent deficit last year, France forecasts a 5.4 per cent gap for 2026 before targeting a reduction to five per cent next year.
Ahead of upcoming elections, Prime Minister Sebastian Lecornu outlined a draft 2027 budget featuring 54 billion euros ($62 billion) in spending cuts and adjustments, while leaving sensitive measures like reduced pensioner tax breaks for parliament to debate.
Despite fierce opposition from lawmakers who argue that indiscriminate spending cuts will disproportionately hurt lower-income citizens, fiscal watchdogs maintain that prompt policy adjustments can avert a full-scale crisis.
However, economic recovery faces added pressure from slowing growth, sluggish consumer spending, and rising energy costs triggered by the ongoing US-Israeli conflict with Iran.
