French Public Debt Reaches Record €3.3 Trillion, Exceeding 113% of GDP

France's debt continues to climb, driven by state borrowing, with projections suggesting further increases before a potential decline after 2027.

France's public debt rose by €71.7 billion in the third quarter of 2024, reaching €3.3 trillion, equivalent to 113.7% of GDP, according to INSEE data.
The increase is primarily attributed to state borrowing, which added €59.8 billion, alongside smaller increases in social security and local administration debts.
Debt levels have surged significantly since the early 2000s, exacerbated by the 2008 financial crisis and pandemic-related spending, with France lagging behind other European nations in reducing debt post-COVID-19.
The credit rating agency Moody's recently downgraded France's sovereign credit rating, citing fiscal uncertainties and political instability following government changes and censure votes.
Projections indicate the debt may peak at 116.5% of GDP in 2027 before a gradual decline, but experts warn of risks to France's financial credibility if fiscal reforms are delayed.