France's debt climbs to highest since 1978: ministry

September 19, 2026 - 20:45

France's public debt will climb to its highest point since 1978 this year, driven by a widening deficit that has alarmed budget watchers. The finance ministry confirmed the projection, noting that the ratio of debt to economic output keeps rising at a pace not seen in more than four decades.

The ministry pointed to several forces behind the surge. Tax revenues have come in weaker than expected while spending on social programs and emergency support measures stayed high. Borrowing costs have also crept upward as markets demand higher returns for holding French bonds.

Economists warn that the trend leaves the government with fewer options. Servicing the debt eats into funds that could go toward infrastructure, education, or defense. Rating agencies are watching closely, and any downgrade would push interest payments even higher.

Officials say they plan to tighten spending and close loopholes, but critics argue the measures announced so far are too small to change the trajectory. Unions and opposition parties have pushed back against cuts, setting up a difficult political fight.

The debt figure is expected to keep climbing unless growth accelerates or new revenue sources appear. For now, France faces a slow squeeze: more borrowing, higher interest, and less room to maneuver.