France's public debt reaches 117.5% of GDP, sparking OECD warning and political debate

France's public debt rose to €3.5 trillion in the first quarter of 2026, equating to 117.5% of GDP, according to Insee data. The OECD warned that without stronger fiscal consolidation the debt could climb to 121‑125% of GDP by 2029, stressing that growth and inflation alone are insufficient to absorb the burden.

The rise in borrowing costs has heightened concerns about a “snowball effect,” where interest payments outpace economic growth. Interest outlays hit €66 billion in 2025 and could approach €100 billion by 2029, threatening to become the state's largest expense. Moody’s forecasts further deterioration among Europe’s biggest borrowers, with France expected to see the steepest rise in interest‑payment ratios.

Politically, the debt surge is a focal point ahead of the 2027 presidential election. Centrist contenders such as Edouard Philippe and Gabriel Attal have pledged fiscal discipline, while a National Rally‑backed report warned of dire consequences if reforms stall. Finance Minister Roland Lescure called for cross‑party support for the 2027 budget, but a fragmented parliament makes passage uncertain, keeping bond‑market volatility elevated.