France leads EU in spending on unemployment benefits and pensions

France remains the European Union’s biggest spender on unemployment benefits, allocating about 2.5 % of its GDP—roughly €10,600 per jobseeker per year—to the programme. Despite these outlays, the country's unemployment rate rose to 7.9 % in the first quarter of 2026, well above Germany’s 3.8 % and the EU average.

In parallel, pensions consume a quarter of France’s total public expenditure, the highest share among EU members. The pension bill accounts for roughly 25 % of the state’s budget, far exceeding Germany’s share and the EU mean. The government announced an additional €3 billion in savings, a modest amount compared with the €500 billion overall public spend, underscoring the fiscal strain of the pension system.

Both issues highlight the pressure on France’s public finances, which already feature a debt of €3.46 trillion and a budget deficit of 58.2 % of GDP, the highest in the Union.