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[BUSINESS] · France · 56 sources

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France public debt hits record 119% of GDP

France's public debt has reached a historic high of 119% of its GDP, totaling approximately 3.596 trillion euros, according to data released by the National Institute of Statistics and Economic Studies (INSEE). This marks the highest debt-to-GDP ratio for the country since 1946, following the reconstruction period after World War II.

In the second quarter of 2026, the debt increased by 59.6 billion euros compared to the first quarter. The government has projected that the debt-to-GDP ratio will continue to climb, reaching an estimated 121.7% by 2027. This fiscal situation is compounded by a projected budget deficit of 5.4% for the current year.

Financial markets are reacting to the rising debt and increasing borrowing costs. The yield on French 10-year bonds has risen to approximately 4.7-4.8%, creating a significant spread compared to German yields. Additionally, data from the Banque de France indicates that 57.5% of France's negotiable debt is held by foreign investors, raising concerns regarding national financial sovereignty.

Entities

Agence France Trésor · Banque de France · Emmanuel Macron · European Union · France · Germany · INSEE · Italy · Switzerland · Sébastien Lecornu

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