France's debt is expected to climb to a record 119.3% of economic output in 2026, with the ratio projected to reach 121.7% in 2027, the finance ministry said on Saturday. The figures were part of a declaration to the High Council of Public Finances, the body that assesses revenue and expenditure forecasts in the government's budget proposal.
According to government data, France's debt-to-GDP ratio was 115.7% in 2025 and stood below 100% in 2019. The ministry also expects the budget deficit to end the year at 5.4%. Prime Minister Sebastien Lecornu said on Thursday he expected the 2026 deficit to be well below 5.5%.
Lecornu has said he plans to include a €54 billion ($62 billion) savings drive in his 2027 budget to keep the deficit from spiralling out of control. But pushing austerity measures through a deeply divided parliament will be difficult, with voters increasingly concerned about the cost of living.
The premium France pays to borrow on bond markets compared with Germany rose to more than a whole percentage point on Friday for the first time since the euro zone debt crisis. That highlights investor unease with the country's stretched finances ahead of elections next year.
