France to Borrow Record €340 Billion in 2027 as Public Debt Hits Highest Share of GDP Since 1946

France will borrow a record 340 billion euros on financial markets in 2027, 28 billion euros more than in 2026, the country's debt agency, Agence France Trésor, announced on Tuesday, September 29 — two days ahead of the presentation of next year's state budget.

The upcoming budget is expected to face intense scrutiny from investors who lend to the French state, coming at a moment when the country's public debt has continued to climb. Public debt rose again in the second quarter to reach 3,595.5 billion euros, equivalent to 119% of gross domestic product, the highest level recorded since 1946.

Investor Attention on the Budget

The scale of the planned borrowing underscores the fiscal pressure facing the French government as it prepares to present a budget that will need to address both the rising debt trajectory and the expectations of bondholders who finance French government spending.

The record borrowing figure and the debt-to-GDP ratio, unmatched in nearly eight decades, are likely to feature prominently in the response to the budget once it is unveiled, with market reaction expected to hinge on the credibility of the government's plans to manage the debt going forward.

Further details of the budget's specific measures are expected once it is formally presented later this week.