France's public debt exceeds €3.5 trillion, interest costs soar

France's public debt has risen to €3.536 trillion in the first quarter of 2026, representing about 117.5 % of the country's GDP, according to INSEE data. The level surpasses the €3.5 trillion psychological barrier and puts the government under intense pressure to meet its EU commitment to keep the fiscal deficit below 3 % of GDP by 2029.

Projections show debt peaking at roughly 118.7 % of GDP in 2027‑28 before a modest decline to 118 % in 2029. Ten‑year French borrowing costs have climbed to around 3.7 %, the highest in the euro‑area after Malta, Latvia and Lithuania. Consequently, annual interest payments are set to rise sharply – from €35.8 billion in 2020 to €50.9 billion in 2025, €59 billion forecast for 2026 and €77 billion by 2028. Republican MP Philippe Zoven warned that “interest payments will likely become the largest expense in the state budget.” He added that even a wholesale sale of public assets such as EDF, Engie, Airbus or gold reserves would not be enough to clear the debt.

The debt surge highlights the fiscal challenge facing France and its ability to fulfill European fiscal rules.