France’s debt hits 119.3% of GDP in 2026, EU monitoring continues

France’s public debt is projected to climb to 119.3% of GDP in 2026, marking the highest level since 1978, according to official projections. The deficit is expected to persist above 5% of GDP through 2027, exceeding the 3% EU rule of thumb for sustainable fiscal balance. The government has outlined €54 billion in budget cuts for 2027, including measures like reducing tax breaks for pensioners, though final decisions remain pending parliamentary approval ahead of next year’s elections. The country has been under special EU monitoring for two years due to its elevated debt levels, with Greece and Italy ranking higher in eurozone indebtedness. Spain’s debt surpassed 100% of GDP in July 2026, while Portugal reduced its debt below 90% in 2025, illustrating divergent fiscal trajectories across the region. The latest downward revision in France’s 2026 growth forecast—driven by weak consumer spending and energy price spikes linked to the US-Israeli conflict with Iran—further strains fiscal projections. The High Council of Public Finances, an independent fiscal watchdog, has emphasized that while risks remain, responsible policy choices could mitigate long-term challenges.