France’s Record Public Debt Fuels Budget Battle Ahead of 2027 Election

At the end of June 2026, France’s public debt reached €3.5955 trillion, or 119 % of gross domestic product (GDP)—the highest ratio since 1946, according to INSEE. The debt rose by €59.6 billion from the previous quarter, following a €75.8 billion increase in the first quarter. Prime Minister Sébastien Lecornu is scheduled to present the 2027 draft budget on 1 October, with a formal submission deadline of 6 October. The government proposes €54 billion in spending cuts and anticipates an additional €10 billion cost to service the debt, aiming to reduce the deficit to 5 % of GDP.

France’s public debt reaches 119% of GDP, highest since 1946 EuronewsEuronewsFrance’s public debt rises to 119pc of GDP in Q2 A look at France’s public debt as economy takes center stage in French election

France’s debt climbed from 97.9 % of GDP in 2019 to 119 % in 2026 after pandemic stimulus, an energy-crisis response, and higher interest rates. The country last balanced its budget in 1973. Under the Maastricht Treaty, euro-area members are required to keep debt below 60 % of GDP, a target France has far exceeded for more than a decade.

A look at France’s public debt as economy takes center stage in French election EuronewsFrance’s public debt rises to 119pc of GDP in Q2 EuronewsFrance’s public debt reaches 119% of GDP, highest since 1946

• Public debt: €3.5955 trillion (119 % of GDP) – end-June 2026.

France’s public debt reaches 119% of GDP, highest since 1946

• Debt increase Q1 2026: €75.8 billion; Q2 2026: €59.6 billion.

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• Projected debt: 119.3 % of GDP in 2026; 121.7 % in 2027.

France’s public debt reaches 119% of GDP, highest since 1946

• Interest-service cost: €77 billion in 2026 and €91 billion projected for 2027 (Economy Minister Roland Lescure).

France’s public debt reaches 119% of GDP, highest since 1946

• Deficit target: 5 % of GDP for 2027, versus a projected 5.4 % for 2026.

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ECB President Christine Lagarde called the radical-left proposal to “freeze” government bonds a “pure violation” of EU treaty rules, warning it would undermine creditor confidence.

A look at France’s public debt as economy takes center stage in French election

Prime Minister Lecornu, speaking to *Le Figaro* on 17 September, argued that without the €54 billion cuts the 2027 deficit would approach 6.5 % of GDP and warned that rising interest rates would require an extra €10 billion in 2027 to cover debt-service costs.

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Economics professor François Facchini (Paris 1) told Euronews that “the public debt ratio will not fall in 2027; it is expected to climb above 120 %.”

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Trade unions and the Socialist Party have denounced the budget as “bitter austerity,” accusing the government of abandoning its commitment to compromise. Arthur Delaporte, spokesperson for the Socialist Party, called the plan a “bitter austerity potion.”

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On the right, Marine Le Pen dismissed the left-wing debt-cancellation proposal as unrealistic, calling for “clean-up” reforms of public finances.

A look at France’s public debt as economy takes center stage in French election

Sources differ on the annual cost of debt servicing: one report cites €77 billion for 2026, another €79 billion, while the government projects €91 billion for 2027. No source provides a definitive breakdown of how the projected €10 billion additional cost will be financed.

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• “Freezing this debt means transforming it into perpetual debt — that is, debt with no repayment deadline and a low or zero interest rate," — Christine Lagarde

A look at France’s public debt as economy takes center stage in French election

• “The public debt ratio will not fall in 2027; it is expected to climb above 120%,” — François Facchini

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The draft Finance Bill must be formally submitted by 6 October. The budget’s passage will require negotiations in a fragmented parliament, and the debt trajectory will remain a central issue in the 2027 presidential campaign, where candidates must outline how they will address a debt ratio projected to exceed 120 % of GDP.

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