France's Public Debt Reaches Record 3.48 Trillion Euros in Q3 2025

Record Public Debt Figures Announced by INSEE

France's public debt reached an unprecedented 3,482.2 billion euros at the close of the third quarter of 2025, according to data released by the French National Institute of Statistics and Economic Studies (INSEE). This figure translates to 117.4 percent of the nation's gross domestic product (GDP), marking a new high outside of periods of war or major pandemics.

The increase represents a rise of 65.9 billion euros between July and September 2025. This follows a 70.9 billion euro increase in the second quarter of the year, when the debt-to-GDP ratio stood at 115.7 percent.

Persistent Budget Deficits and Contributing Factors

The escalating public debt is closely linked to France's ongoing struggle with persistent budget deficits. The country's budget deficit reached €100.4 billion in the first six months of 2025. Forecasts indicate that the government budget deficit is expected to be around 5.4 percent of GDP by the end of 2025, with some projections placing it at 5.5 percent. French Finance Minister Eric Lombard had previously targeted a 2025 deficit in the range of 5 percent to 5.5 percent of GDP.

Several factors have been identified as contributing to the rising debt and deficits, including:

• Sluggish economic growth
• Ongoing government spending pressures
• Costs associated with energy subsidies
• Pension reforms
• Increases in public sector pay

Economic Implications and International Scrutiny

France's debt-to-GDP ratio has nearly doubled over the past three decades, rising from 57.8 percent in 1995 to its current levels. Within the Eurozone, only Greece and Italy currently report higher debt-to-GDP ratios, both exceeding 135 percent. This places France's debt ratio as the third highest in the EU as of July 2025.

The fiscal situation has drawn attention from international bodies and credit rating agencies. Earlier in 2025, Standard & Poor's downgraded France's credit outlook, citing weak fiscal consolidation efforts. The French Court of Auditors has also issued warnings that without structural reforms, the increasing debt levels could undermine long-term economic stability. Concerns have also been raised regarding France's bond yields, which have reportedly moved closer to Italy's and further from Germany's, potentially leading to increased borrowing costs. Interest payments on the debt are estimated to reach €53 billion in 2025, with projections suggesting they could exceed €60 billion by 2026.

Recent political challenges, including a parliamentary impasse over the 2026 budget, further underscore the difficulties in addressing the nation's fiscal trajectory.