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France's Public Debt Surpasses 3.5 Trillion Euros Amid Rising Service Costs
🇬🇷 Greece /Economy & Trade

France's Public Debt Surpasses 3.5 Trillion Euros Amid Rising Service Costs

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • France's public debt surpassed 3.5 trillion euros in early 2026, reaching 117.5% of its GDP.
  • The country faces a challenge in meeting its commitment to reduce its deficit to below 3% of GDP by 2029.
  • Rising interest rates are significantly increasing the cost of servicing France's debt, with interest payments projected to become a major budget item.

France's public debt has surged past 3.5 trillion euros for the first time, reaching 3.5361 trillion euros in the first quarter of 2026. This figure represents 117.5% of the nation's Gross Domestic Product (GDP), according to the National Institute of Statistics and Economic Studies (INSEE).

The French government is committed to Brussels to reduce its public deficit to below 3% of GDP by 2029. Projections indicate that French debt will peak at 118.7% of GDP in 2027 and 2028 before a slight decrease to 118% in 2029. However, achieving this target is considered uncertain.

Compounding the fiscal pressure, France's borrowing costs for 10-year bonds have risen to 3.7%. Only Malta, Latvia, and Lithuania are experiencing higher interest rates within the eurozone. This increase in interest rates is placing a significant burden on public finances by escalating the cost of debt servicing.

Annual interest payments by the French government are rapidly increasing. They rose from 35.8 billion euros in 2020 to an estimated 50.9 billion euros in 2025, and are projected to reach 59 billion euros in 2026 and 77 billion euros by 2028. Republican lawmaker Philippe Juvin warned that these interest payments "will then very likely become the largest budget item."

interest payments will then very likely become the largest budget item.

— Philippe JuvinA Republican lawmaker warned about the growing cost of servicing France's national debt.
DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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