France’s national debt has climbed to a staggering €3,482.2 billion ($4,080.22 billion USD) by the end of the third quarter, according to the National Institute of Statistics and Economic Studies (INSEE). This figure represents 117.4% of the country’s Gross Domestic Product (GDP), a significant increase from the 115.7% recorded in the previous quarter.
INSEE reported a €65.9 billion ($77.22 billion USD) increase in debt between July and September, following a €70.9 billion ($83 billion USD) rise in the preceding quarter. France’s debt burden is the third highest in the European Union, trailing only Greece and Italy.
A substantial portion of the quarterly increase, €58.1 billion, is attributed to the state, specifically the central government’s debt, which totals €2,845.7 billion ($3,334.41 billion USD). These figures were released amidst a stalemate within a joint committee of parliamentarians and senators tasked with approving the 2026 budget.
Prime Minister Sebastien Lecornu announced that the committee would be unable to vote on the 2026 budget before the end of the year due to irreconcilable differences between deputies and senators. This effectively postpones the budget’s approval to 2026.
The failure to reach an agreement within the joint committee highlights a deep division regarding key budgetary items, particularly concerning deficit levels, taxation policies, and government spending. This impasse comes amidst growing economic pressures and a rising national debt.
As a result, the government will operate under a “special law,” extending the 2025 budget into early 2026 for tax collection purposes. Work on drafting a formal budget will resume in the coming weeks. This situation underscores the challenges facing the French government as it navigates a complex economic landscape. The delay in budget approval could have significant implications for public services and economic stability. The government faces mounting pressure to address the rising debt and implement sustainable fiscal policies.
