France is facing growing pressure in its public finances as government borrowing costs climb toward levels last seen during the 2008 financial crisis.
French 10-year government bond yields recently moved above 4.13%, while the country’s debt-to-GDP ratio is projected to remain above 120% in the coming years. At the same time, economic growth remains weak and political divisions are making efforts to reduce the deficit increasingly difficult.
France’s budget deficit reached 5.1% of GDP last year, well above the European Union’s 3% reference limit. The country is also under the EU’s excessive deficit procedure and faces another difficult budget battle ahead of the 2027 presidential election.
Investors are increasingly concerned about whether Paris can deliver credible fiscal consolidation while dealing with weak growth, high borrowing costs and political instability.
The situation has led some market analysts to describe France as a “poster child” for the sovereign debt problems facing advanced economies.
Watch the full report for the latest developments in France’s debt crisis, rising bond yields, political uncertainty, the 2027 election and the growing risks for European financial markets.
