French debt climbs to 119% of GDP

France's national debt has reached nearly €3.6 trillion, representing 119% of its gross domestic product as of the end of June, according to data released by national statistics agency Insee. This development comes amid growing pessimism about the French economy's future, with its debt levels nearing those of heavily indebted countries like Italy and Greece, while economic growth remains stagnant.

Prime Minister Sébastien Lecornu has indicated plans to propose €54 billion in savings for the 2027 budget, which is set to be formally unveiled on Thursday. Lecornu has pledged to reduce the annual budget deficit to 5% of GDP next year. However, it remains uncertain whether his minority government can secure sufficient support for these spending measures.

France had initially set a 5% deficit target for the current year but is expected to fall short due to sluggish economic growth and increased energy prices, exacerbated by the conflict in the Middle East. Even before the latest figures were published, independent auditors and international institutions had expressed doubts about France's ability to meet the European Union's rule of bringing its deficit below 3% of GDP by 2029.

The 2027 budget, the last to be debated before next year's presidential election, has drawn criticism from left-wing opposition parties. The far-right National Rally, led by Marine Le Pen, who is currently leading in opinion polls, has offered mixed signals regarding its fiscal plans.