Sept 19 (Reuters) – France’s debt is expected to reach a record high of 119.3% of output in 2026, with a projected debt-to-GDP ratio of 121.7% in 2027, the finance ministry said on Saturday, in the latest indication of the country’s deteriorating public finances
The finance ministry made the projection in a declaration to the High Council of Public Finances, the body tasked with evaluating revenue and expenditure forecasts in the government’s budget proposal. In 2025, France’s debt-to-GDP ratio was 115.7%, and it was below 100% in 2019, according to government data.
The ministry also said it expects to end the year with a budget deficit of 5.4%. Prime Minister Sebastien Lecornu said on Thursday he expected the 2026 deficit to be well below 5.5%.
Lecornu has announced plans to include a €54 billion ($62 billion) savings drive in his 2027 budget to stop the deficit spiralling out of control, but he faces a tough task to push austerity measures through a deeply divided parliament amid mounting pressure from voters over the cost of living.
The premium France pays to borrow on the bond markets compared to Germany rose to more than a whole percentage point on Friday for the first time since the euro zone debt crisis, underscoring investor unease with its stretched finances ahead of elections next year.
(Reporting by Gabriel Stargardter; Editing by Kirsten Donovan and Ros Russell)
