Key facts
- France's debt-to-GDP ratio is expected to reach a record 119.3% in 2026.
- The debt-to-GDP ratio is projected to be 121.7% in 2027.
- The debt-to-GDP ratio was 115.7% in 2025.
- The debt-to-GDP ratio was below 100% in 2019.
- The finance ministry expects a budget deficit of 5.4% for the current year.
- Prime Minister Sebastien Lecornu plans a €54 billion savings drive for the 2027 budget.
France's debt is expected to reach a record high of 119.3% of output in 2026, with a projected debt-to-GDP ratio of 121.7% in 2027, according to the finance ministry. This projection was made in a declaration to the High Council of Public Finances, which evaluates revenue and expenditure forecasts for the government's budget proposal. The debt-to-GDP ratio stood at 115.7% in 2025, a significant increase from below 100% in 2019. The ministry also anticipates ending the current year with a budget deficit of 5.4%. Prime Minister Sebastien Lecornu stated on Thursday that the 2026 deficit is expected to be well below 5.5%. Lecornu has outlined plans for a €54 billion savings initiative to be included in the 2027 budget to manage the deficit, though he faces challenges in passing austerity measures through a divided parliament amidst public pressure over the cost of living. Investor unease over France's financial situation was highlighted on Friday when the premium on French government bonds compared to German bonds exceeded one percentage point for the first time since the euro zone debt crisis.