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France’s Debt Hits Record 117.4% of GDP as Budget Standoff Makes Special Law Likely

The 2026 budget impasse points to a temporary special law that experts warn would widen the deficit.

Overview

  • INSEE reports public debt at €3,482.2 billion at end‑Q3 2025, up about €66 billion in three months to 117.4% of GDP.
  • The state drove most of the quarterly rise (+€58.1 billion), with social security debt up €7.6 billion and local administrations up €0.5 billion.
  • Net public debt reached €3,232.3 billion, equal to 109% of GDP, extending its increase from the previous quarter.
  • A joint parliamentary committee failed to produce a 2026 budget, clearing the way for a technical extension of 2025 rules early next year.
  • The Banque de France forecasts growth of 0.9% in 2025 and 1% in 2026, while the OFCE estimates a year under a special law would cut receipts by roughly €6.5–7 billion and lift the deficit, with the governor warning it would be higher than desirable.