Public debt in France rises to 3.6 trillion euros and growth expectation drops

Protests initiated by students in France and expanding with reactions against the high cost of living have increased discussions about the country's growing public debt and slowing economy. As the country's public debt rose to 3.6 trillion euros as of the end of June, the IMF lowered its growth expectation for this year to 0.4 percent.

Public Debt and Budget Deficit

According to data from the French National Institute of Statistics, the country's public debt reached approximately 3.6 trillion euros at the end of June, with the debt-to-gross domestic product (GDP) ratio standing at 119 percent. The government projects that the budget deficit will exceed European Union limits and could rise to 122 percent. Gilbert Cette, a Professor of Economics at Neoma Business School, stated that the debt level limits policies, leaving the government with no choice other than cutting spending or increasing taxes.

According to data from the Statistical Office of the European Union (Eurostat), the ratio of public spending to GDP in France was recorded at 57.2 percent in 2025, while the EU average remained below 50 percent. The ratio of tax revenues and social security contributions to GDP reached 45.2 percent in 2024, ranking second in the EU behind Denmark.

Borrowing Costs and Economic Stagnation

Economic uncertainties affected the bond market, and the yield on France's 10-year government bonds rose to 4.96 percent on Tuesday. In Germany, the yield on bonds with the same maturity hovered around 3.4 percent. The International Monetary Fund (IMF) expects the French economy to grow by 0.4 percent this year, standing out as one of the lowest levels among developed economies.

Carsten Brzeski, Global Head of Macroeconomics at ING Bank, compared France's situation to the 2009 Greek debt crisis, stating that the country is experiencing a loss of confidence due to unfulfilled promises and delayed reforms.