France’s public debt has surged to a historic high, reaching €3.4 trillion (approximately $4 trillion) by the second quarter of 2025, according to new figures released on Thursday by the national statistics bureau, INSEE. The figure represents 115.6% of the country’s GDP, placing France behind only Greece and Italy in the European Union’s debt rankings.
The debt burden increased by nearly €80 billion in just three months, further complicating the political landscape for newly appointed Prime Minister Sebastien Lecornu, who assumed office amidst a wave of protests and a deepening fiscal crisis.
Record Debt, Shrinking Options
France’s debt-to-GDP ratio now stands at nearly double the 60% cap recommended by EU fiscal rules, underscoring growing concerns about the country’s long-term financial stability. The development comes as Lecornu President Emmanuel Macron’s seventh prime minister since 2017, faces mounting pressure to present a viable budget before mid-October, with a parliamentary vote expected by the year’s end.
Lecornu, who replaced Francois Bayrou earlier this month after Bayrou’s ouster over his controversial austerity budget, has yet to form a new government. He inherits a difficult task: balancing fiscal responsibility with growing public discontent and a fractured National Assembly, where Macron’s centrist alliance lacks a majority.
In a candid meeting with union leaders this week, Lecornu reportedly acknowledged his precarious position, saying, “I am the weakest prime minister of the Fifth Republic”, a striking admission that highlights the political fragility of his early tenure.
Bayrou’s short-lived tenure, which lasted just nine months, was marked by his plan to cut €44 billion in spending to reduce France’s deficit, currently the highest in the EU. That proposal ultimately triggered parliamentary backlash and widespread street protests.
Lecornu has since vowed a break from the past, hoping to reset the tone in Paris. But analysts warn that any aggressive spending cuts could provoke further unrest and risk repeating Bayrou’s downfall.
Unions have already scheduled fresh nationwide protests for October 2, just weeks after hundreds of thousands took to the streets in opposition to Macron’s economic agenda. Much of the public anger is aimed at what critics describe as “austerity for the poor and protection for the wealthy.”
In a symbolic gesture to cool tensions, Lecornu has pledged to eliminate lifetime privileges for former prime ministers and reversed Bayrou’s controversial plan to abolish two public holidays. But policy experts have dismissed these moves as largely cosmetic.
Adding to the pressure, Fitch Ratings downgraded France’s credit rating earlier this month from “AA-” to “A+”, citing unsustainable debt growth and warning that the country’s borrowing needs would continue to climb until at least 2027 unless swift action is taken.
International investors have started to demand higher premiums on French bonds, raising the cost of debt servicing, a red flag for a country already burdened by steep interest payments.
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