France's public debt hits a record €3,595.5 billion, 119% of GDP
Victoria Shinder1 min readFrance's public debt reached €3,595.5 billion at the end of June, a record, statistics agency Insee said on 29 September, as reported by Euronews. Measured against the economy it also hit a historic high of 119% of GDP; the last time the ratio was that high was 1946.
Debt rose by €59.6 billion in the second quarter, after €75.8 billion in the first, when it stood at 117.5% of GDP. Central government and social security debt increased, while local authority debt fell. The government warned earlier this month that the ratio would reach 121.7% of GDP in 2027, more than double the EU reference of 60% and the highest since Insee began the series in 1978.
The cost is rising with rates. France pays around €79 billion in interest in 2026, and the government expects that to reach €91 billion in 2027. Investors now demand close to 5% to lend to the state for ten years, a level not seen since 2008.
The figures complicate the 2027 budget bill, due on 1 October, which aims to bring the deficit down to 5% of GDP, a year later than previously planned. Many economists quoted in the report expect the presidential campaign to rule out structural reform, making even that target hard to reach.
Why it matters
France is the euro area's second-largest economy and one of its largest bond issuers. A debt ratio rising while ten-year yields approach 5% means interest costs grow faster than the budget can be cut, which keeps French spreads, and the ECB's tolerance for them, in focus through the budget debate.