France’s public debt reaches 119% of GDP — Politico Europe

France’s public debt stood at nearly €3.6 trillion at the end of June, or 119% of the country’s gross domestic product. The data were released on Tuesday by the French national statistics agency Insee, Politico Europe reports.

Economic concerns

The new figures were published amid growing pessimism about the prospects of the French economy. France’s debt level is increasingly approaching those of Italy and Greece, the two most indebted countries in the eurozone. At the same time, economic growth in France is stagnating.

France has set a budget deficit target of 5% of GDP this year. However, the country is likely to miss this target due to limited economic growth and higher energy prices linked to the war in the Middle East.

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Government plans for 2027

French Prime Minister Sébastien Lecornu said earlier this month that he would propose €54 billion in savings in the 2027 budget. The budget draft is formally due to be presented on Thursday.

Lecornu has pledged to reduce the budget deficit to 5% of GDP next year, but it remains unclear whether his minority government can secure sufficient support to implement its spending plans. Even before the new data were released, independent auditors and international institutions considered France’s commitment to reduce the deficit to below 3% of GDP by 2029, in line with EU rules, unrealistic.

The 2027 budget will be the last one the government discusses before next year’s presidential election. It has already drawn criticism from Lecornu’s left-wing opponents, while the far-right National Rally party has sent mixed signals about its plans.