France prepares for record borrowing amid rising government debt
In 2027, France plans to raise a record €340 billion on the debt market through the issuance of medium- and long-term government bonds. The borrowing volume will continue to grow amid a high budget deficit, an increase in government debt, and the need to refinance maturing securities.
The plans are reported by Le Monde, citing Agence France Trésor (AFT), which manages the country’s government debt. The new volume will be approximately 10% higher than the 2026 program.
This year, Agence France Trésor plans to place €310 billion in medium- and long-term bonds, taking into account the buyback of previously issued securities. Thus, next year the volume of net market borrowing could increase by approximately another €30 billion.
The growth in financing needs occurs simultaneously with a further increase in government debt. According to data published on September 29, by the end of the second quarter of 2026 France’s debt had reached about €3.596 trillion, or 119% of GDP. This is one of the highest figures for the post-war period.
The government expects the debt burden to continue to grow. In the draft budget, the government debt ratio is estimated at 119.3% of GDP for 2026 and 121.7% of GDP in 2027. The reason remains the large budget deficit: the state has to raise new funds not only to repay old obligations but also to finance current expenditures.
At the same time, debt servicing is becoming more expensive. According to estimates by the French authorities, the state’s interest expenses could rise from about €79 billion in 2026 to €91 billion in 2027. The rise in borrowing costs means that an increasingly large share of the budget will go to paying interest on debt already accumulated.
The government is preparing a budget savings package for 2027 of about €54 billion. However, its implementation will require parliamentary support, and budget decisions are being made against the backdrop of high government debt and the increased cost of financing for France on the bond market.
