France’s public debt reaches highest level since 1978

France’s public debt is expected to reach 119.3% of GDP in 2026, the highest level since 1978, driven by the country’s budget deficit.

France ranks third among eurozone countries in terms of debt, behind only Greece and Italy, Euractiv reports.

According to sources cited by the outlet, France’s public debt could rise to 121.7% of GDP in 2027, more than double the EU’s target of 60% of GDP for member states. The sources said the increase in France’s public debt was “automatic” and a consequence of the persistently high deficit.

Under EU rules, the budget deficit should not exceed 3% of GDP. However, France’s deficit stood at 5.1% of GDP in 2025, while the government expects it to reach 5.4% this year.

The French government expects the deficit to fall to 5% in 2027, when presidential elections will be held and a new government formed. Last week, while presenting the draft budget, Prime Minister Sébastien Lecornu proposed €54 billion in budget adjustments and spending cuts for 2027.

At the same time, the government has submitted final decisions on the most socially sensitive issues, including cuts to tax benefits for pensioners, to parliament.

By Jeyhun Aghazada