France's debt reaches 119% of GDP

The French government's total debt has reached 3,595.5 billion euros, which is equivalent to 119% of the country's gross domestic product (GDP). This level of debt is already higher than the 100% limit set by European Union treaties for member states.

Deficit and future projections

France's budget deficit for the year is 5.1% of GDP, or 152 billion euros. By 2027, the country's debt is expected to rise to nearly 122% of GDP, surpassing the EU's allowed limit and signaling growing financial concerns.

Comparisons to Japan's situation

Japanese media are examining France's debt situation with concern, drawing parallels to Japan's own economic challenges. Japan has faced a similar trajectory of rising public debt, driven by increasing social spending and an aging population, which has led to a public debt of 206% of GDP in 2025.

Rising interest rates and currency concerns

Long-term interest rates are increasing, raising the cost of borrowing for France. Japanese media have also warned about the declining value of the yen, a concern that could affect France's economic stability as well.

Debt management and policy challenges

France is considering reducing the value-added tax (VAT) on food, a move that could help ease the burden on households but may also increase the country's debt. Meanwhile, the term "spread" — referring to the difference in interest rates between government bonds and risk-free investments — has become a topic of discussion in both France and Belgium.

Concerns over a Greek-style crisis

Some analysts are questioning whether France's current financial situation could resemble that of Greece in 2009, when the country faced a severe debt crisis that led to a financial bailout and significant economic reforms.