Full Breakdown
France’s Public Debt Hits Record 119 % of GDP
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Record Debt Levels in Q2 2026
On September 29, 2026, France’s national statistics office INSEE reported that total public debt reached €3.5955 trillion at the end of June, equivalent to 119 % of gross domestic product (GDP). This is the highest debt-to-GDP ratio since 1946, surpassing the 117.8 % peak recorded during the COVID-19 pandemic in 2021. The increase from the end of March was €59.6 billion, following a €75.8 billion rise in the first quarter.
Fiscal Context and Projections
INSEE’s figures show the debt-to-GDP ratio rose from 117.5 % in Q1 to 119 % in Q2. Government forecasts project the ratio will edge to 119.3 % by the end of 2026 and to 121.7 % in 2027. Economy Minister Roland Lescure indicated that debt-servicing costs, already €79 billion in 2026, are expected to climb to €91 billion the following year.
Market Reaction and Servicing Burden
Rising borrowing costs have intensified. Ten-year French bond yields have risen to 4.73 % and 30-year yields to 5.3 %, the highest levels since 2003. Investors now demand interest rates close to 5 % for ten-year loans, a rate not seen since the 2008 financial crisis. Consequently, France’s borrowing costs exceed those of Greece, Italy, Spain, Portugal, and even Germany, whose ten-year yield stands at 3.65 %.
Budgetary Response and Political Landscape
Prime Minister Sébastien Lecornu’s government plans to present the 2027 draft budget by October 1. The budget aims to cap the deficit at 5 % of GDP and includes €54 billion in proposed savings. However, the administration lacks a parliamentary majority, and left-wing parties have voiced strong opposition. The nationalist National Rally has offered mixed signals on fiscal policy, while public-sector strikes in transportation, healthcare, and education underscore growing social tension.