France's 2026 First‑Half Budget Deficit Rises to €106.8 billion

The French state reported a budget deficit of €106.8 billion for the first half of 2026, an increase of €6.4 billion compared with the same period a year earlier. Revenue grew 2.8 % while overall spending jumped 5.6 %, widening the fiscal gap.

Debt‑service costs surged, with interest payments rising about 18 % to roughly €34.5 billion, further straining public finances. Higher defence spending, including a new €36 billion military programme for 2026‑2030, contributed to the expenditure increase.

The widening deficit signals a return to a structural fiscal imbalance after a 2025‑wide reduction, raising concerns about future growth and borrowing costs for French businesses and households.