French finance ministry expects record debt in 2026, reaching nearly 120% of GDP

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.

($1 = ‌0.8709 euros)