France's income tax may not cover debt interest next year, warns François Bayrou

François Bayrou, former French Prime Minister, has issued a stark warning about France's escalating debt, stating that next year, the entirety of the nation's income tax revenue might be insufficient to cover the interest payments on its debt. This alarming projection underscores the severity of the fiscal challenges facing the country as presidential candidates begin their campaigns.

Bayrou, speaking on BFMTV, described the debt as a "curse" threatening the nation's future. He emphasized that the projected interest payments are for the debt's servicing, not for repaying the principal. With France's accumulated debt standing at approximately 3,500 billion euros, the burden on current and future generations is immense. This fiscal reality looms large over the upcoming presidential elections, with no major candidate seemingly able to ignore the issue.

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Not to repay the capital, but to pay the interest on the debt.

The former Prime Minister pointed to the figures to support his claims. As of the first quarter of 2026, French debt reached 3,536.1 billion euros, equivalent to 117.5% of the Gross Domestic Product (GDP), according to INSEE. The state's debt servicing is expected to reach 64 billion euros in 2026 and could rise to 100 billion euros in the coming years. This figure is significant, potentially surpassing the budgets allocated to education and defense.

Bayrou expressed reservations about the preparedness of candidates like Édouard Philippe to tackle this crisis. While acknowledging Philippe's intention to address the situation, Bayrou questioned whether he and others have a concrete plan to manage the country's commitments. Current projections suggest the government's deficit target of 5% of GDP for 2026 might be exceeded, with the Treasury estimating it at 5.2%. The urgency of the debt situation, Bayrou argues, requires more than just intentions; it demands decisive action and difficult choices.

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There are three or four dominant problems and one dominates all the others: it is the debt. That is to say the charge that will weigh on the current generations who are working or who are taxpayers.