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France Sets Record €310 Billion Borrowing Plan for 2026 Under Interim Law

Issuance can start in January pending the finance law, leaving the program open to later adjustment.

Overview

  • Agence France Trésor confirmed a €310 billion target for net medium- and long‑term issuance in 2026, defined as maturities of one year or more net of early redemptions.
  • A special law promulgated by President Emmanuel Macron authorizes tax collection and market borrowing from January despite the absence of a voted budget.
  • The agency noted the amount may be revised once Parliament adopts the 2026 finance law, with budget debates scheduled to resume in January.
  • France’s debt burden and funding costs have risen, with public debt near €3.5 trillion in Q3 2025 and an average 2025 medium/long‑term rate of 3.14% and a 10‑year rate around 3.37%.
  • Market pricing has turned less favorable for France, with reported spreads wider than Germany, Italy and Spain, and the next market operation scheduled for Thursday, 8 January.