France’s finance ministry projects public debt will reach 119.3% of economic output in 2026 and 121.7% in 2027, up from 115.7% in 2025. The government says its draft 2027 budget will comply with European Union recommendations, with net primary expenditure growth limited to 0.7% versus the European Commission’s 1.2% recommendation. The ministry expects the 2025 budget deficit to reach 5.4%, while Prime Minister Sebastien Lecornu said the 2026 deficit should be well below 5.5%. Lecornu plans to include a €54 billion ($62 billion) savings drive in the 2027 budget, but his minority government faces opposition in parliament and pressure from voters over living costs. France’s borrowing premium over Germany rose above one percentage point, the highest since the euro zone debt crisis, ahead of elections next year. The draft also targets government spending at 56.9% of output in 2027, down from 57.1% in 2026, with tax revenues at 44.2%.