France Projects Record Debt of 119.3% of GDP in 2026

France's public debt is projected to climb to a record 119.3% of economic output in 2026, with the ratio set to rise further to 121.7% in 2027, the finance ministry has said in a declaration to the High Council of Public Finances. The body is responsible for assessing the revenue and expenditure forecasts contained in the government's budget proposal.

The latest figures highlight the steady deterioration of the country's public finances. In 2025, the debt-to-GDP ratio stood at 115.7%, up from below 100% in 2019, according to government data.

The ministry also expects the budget deficit to reach 5.4% of GDP by the end of the year. Prime Minister Sebastien Lecornu said on Thursday that he anticipated the 2026 deficit would be well below 5.5%.

Lecornu has announced plans for a €54 billion ($62 billion) savings drive in the 2027 budget to prevent the deficit from spiralling out of control. However, he faces a difficult task in steering austerity measures through a deeply divided parliament, with voters increasingly concerned about the cost of living.

Investor unease has been reflected in the bond market. The premium France pays to borrow compared with Germany rose above a full percentage point on Friday for the first time since the euro zone debt crisis, ahead of elections next year.