Stories
France's Public Debt Soars to Highest Since 1978 Amid Rising Deficit
F
Firstpost•20-09-2026, 06:57
France's Public Debt Soars to Highest Since 1978 Amid Rising Deficit
- •France's public debt is projected to reach 119.3 percent of GDP in 2026 and 121.7 percent in 2027, the highest levels since 1978.
- •These figures significantly exceed the EU's 60-percent-of-GDP reference limit for member countries.
- •The country's public deficit hit 5.1 percent of GDP last year and is forecast to reach 5.4 percent this year, well above the EU's 3 percent limit.
- •France is the third most indebted country in the eurozone, trailing only Greece and Italy.
- •The government plans 54 billion euros in budget adjustments and cuts for 2027, with some sensitive measures left for parliamentary decision ahead of elections.
Key Questions Answered
According to the French finance ministry, public debt is expected to reach 119.3 percent of GDP in 2026 and rise to 121.7 percent in 2027, which marks the highest level since 1978.
Prime Minister Sebastian Lecornu outlined plans for adjustments and spending cuts worth 54 billion euros, or $62 billion, in the 2027 draft budget.
France's economic growth forecast was revised down because the economy has been impacted by weak consumer spending and the surge in energy prices resulting from the US-Israeli war against Iran.
