France faces soaring debt service costs as budget pressures mount

According to Philippe Juvin, the general budget rapporteur, France's public debt will keep expanding, pushing the debt-to-GDP ratio above 119% at the end of 2026 and further higher in 2027, surpassing levels seen during the Covid-19 pandemic. Government attempts to trim spending—such as freezing social aid, charging patients and delinking pensions from inflation—are unlikely to curb the rising debt service burden. Interest costs, which were €53.4 billion in 2023, are projected to rise to €79.2 billion in 2026 and €91.2 billion in 2027.

These figures outstrip the planned budget for the Ministry of Education. Officials, including former Comptroller Amélie de Montchalin and current public accounts minister David Amiel, warned that unchecked debt growth could lead to a financial squeeze, especially as ten-year French bond yields have risen to over 5%.