France's Public Debt Hits Record €3.4 Trillion, Raising Concerns Over Economic Stability

France's public debt has reached a staggering €3.4 trillion, or 115.6% of its GDP, marking a dramatic rise from previous figures, according to newly released statistics from the National Institute of Statistics and Economic Studies (Insee) on September 25, 2025. This increase of €70.9 billion in just the second quarter of the year has set a new national record, leading to renewed fears about the country's financial stability and capacity to manage its fiscal obligations.

This latest figure represents an annual increase of €187 billion, a rise of 6% over the past year alone. The trend of escalating public debt has been concerning; in less than a decade, France's debt has surged by an alarming €1 trillion. Comparatively, a year prior, the debt was recorded at 112% of GDP when Michel Barnier took office.

Fitch Ratings has warned that France's debt could surpass 120% of GDP by 2030, potentially exceeding the peak of 117.8% noted during the COVID-19 pandemic in 2021. The situation has incited significant anxiety among analysts, especially after the agency downgraded France’s sovereign rating from 'AA-' to 'A+' on September 12, citing ineffective deficit management.

Further exacerbating the situation, budget imbalances have persisted for 50 years, characterized by expenditures consistently outpacing revenues, culminating in a deficit forecast nearing €170 billion last year. In addition to increasing debt levels, the cost of servicing this debt is projected to escalate to €67 billion by 2025, outpacing even national defense spending.

Commenting on these concerns, former Prime Minister François Bayrou described the mounting debt as an 'Himalaya,' indicating the daunting challenge it presents to the government. New Prime Minister Sébastien Lecornu, referencing this fiscal challenge, conveyed determination to address the issue, claiming, "We will succeed," and expressing that challenges often lead to progress.

As France grapples with its rising public debt crisis, its ability to manage and reduce this burden is likely to become a critical focal point for the new administration as it strives to foster economic stability in the coming years.