France—the European Union’s second-largest economy—is facing mounting fiscal pressure as its public debt exceeded €3.5 trillion in the first quarter of 2026, reaching 117.5% of GDP, according to France’s top independent audit body, the Cour des Comptes (Court of Audit).
A Mounting Fiscal Challenge
The Court of Audit highlighted in its latest report that public debt is on a steep upward trajectory—projected to rise by more than €160 billion over the course of 2026 alone. While some international media outlets cited a figure of 118% of GDP, the Court clarified that this reflects projections extending through year-end.
Rising Borrowing Costs Add Pressure
Compounding the strain, higher interest rates are significantly increasing the cost of servicing existing debt. Interest payments are expected to reach €77.4 billion in 2026—outpacing efforts to rein in other expenditures. As Carine Camby, First President of the Court of Audit, starkly put it: “Debt suffocation is not a risk—it is the current reality of our public finances.”
Political Uncertainty Hinders Reform
The Court criticized the government’s fiscal strategy for relying heavily on revenue increases while offering only limited, poorly substantiated measures to curb spending—particularly in social and state services. This uncertainty is amplified by political instability: following President Emmanuel Macron’s loss of parliamentary majority in the 2024 snap elections, successive minority governments have struggled to pass budgets or meaningfully reduce the deficit.
A Call for Credible Long-Term Planning
The Court urged the government to present a clear, credible multi-year fiscal consolidation plan. Its central objective should be bringing the deficit below 3% of GDP by 2029—a key EU fiscal rule—and subsequently achieving sustainable primary surpluses.