France Public Debt Hits 121.7% of GDP by 2027
Paris projects a record debt burden of 121.7% of GDP in 2027, driven by persistent deficits and rising interest costs. The government faces a difficult fiscal path to stabilize its public finances.
France’s public debt is projected to reach 121.7% of gross domestic product in 2027. This figure represents a record high for the nation and far exceeds the European Union’s 60% reference threshold. The Finance Ministry expects the ratio to climb from 115.6% in 2025 to 119.3% in 2026. These projections were reported by GN auto markets/bonds: sovereign debt.
The government aims to cut the budget deficit to 5.0% of GDP by 2027. Officials state that a deficit near 3% of GDP is required to stabilize the debt ratio. Current forecasts show the deficit remaining above 5% in both 2026 and 2027. This persistent gap between revenue and spending continues to expand the total debt stock.
Structural spending pressures remain high
Public expenditure is expected to account for 57.1% of GDP in 2026. This level will ease slightly to 56.9% in 2027. Costs include pensions, healthcare, education, and defense. Interest payments on existing debt also contribute to total spending. These structural costs limit the government’s ability to reduce the deficit quickly.
Slower economic growth restricts organic tax revenue increases. Higher interest rates raise the cost of servicing government debt. France must refinance maturing bonds at higher rates than in previous low-rate periods. This creates a feedback loop where larger deficits increase debt, and higher debt increases interest costs.
Fifty-four billion euro consolidation plan
Prime Minister Sébastien Lecornu’s government has outlined a €54 billion fiscal effort. This package combines spending restraint and tax increases. Without these measures, the deficit would exceed 6.5% of GDP next year. The plan targets a reduction to 5.0% of GDP for 2027.
The measures face political and social resistance. Opposition parties, trade unions, and voters are critical of the proposed changes. High fuel prices and weak purchasing power add to public frustration. The government must balance fiscal discipline with social stability to pass the budget.
