France and Germany Report Rising Public Debt Levels
France's public debt hit a record 119% of GDP while Germany's general public debt rose to 2.75 trillion euros in the second quarter of 2026.
Public debt levels have surged across Europe's largest economies, with France reaching a record 3,595.5 billion euros by the end of June 2026. According to the National Institute of Statistics and Economic Studies, this represents 119% of the country's gross domestic product, the highest ratio since 1946. The government projects debt will climb further to 121.7% of GDP by 2027, more than double the European Union's 60% ceiling.
To manage this crisis, the Agence France Trésor announced plans to borrow a record 340 billion euros in 2027 to finance spending and refinance debt from the Covid-19 era. Prime Minister Sébastien Lecornu intends to propose 54 billion euros in savings in the 2027 budget to reduce the deficit to 5% of GDP. However, Lecornu has vowed to achieve these cuts without implementing austerity measures, a goal complicated by an upcoming presidential campaign and a minority government.
Meanwhile, Germany's general public debt increased by 1 percent in the second quarter of 2026, reaching 2.75 trillion euros. Data from the Federal Statistical Office shows the increase was driven largely by special federal funds, including a 39.1 percent jump in the Infrastructure and Climate Neutrality fund and an 8.8 percent increase in the Bundeswehr special fund. State governments also reported a 0.5 percent debt increase, totaling 646.2 billion euros.
