France public debt hits record 3.6 trillion euros

France's public debt has reached a record 3.595 trillion euros as of the end of June, representing approximately 119% of its GDP. This marks the highest debt level recorded in the country since 1946.

The increase of roughly 60 billion euros in just three months comes amid a period of higher interest rates, which complicates financing compared to the low-cost borrowing available during the 2020-2021 pandemic period. The French Ministry of Finance projects debt will reach 119.3% of GDP by the end of 2026 and 121.7% in 2027, a trend also anticipated by the European Commission.

Economic growth is expected to remain slow, with the European Commission forecasting increases of 0.8% in 2026 and 1.1% in 2027. Additionally, the fiscal deficit remains a concern; without new measures, it could reach 5.7% of GDP by 2027. To address these challenges, the French government is seeking approximately 54 billion euros in fiscal savings to curb deficit growth and manage rising interest payments, which are projected to reach between 91 billion and 100 billion euros annually by 2027-2028.