French public debt reached a record €3,595.5 billion at the end of June, equal to 119% of gross domestic product (GDP), according to the National Institute of Statistics and Economic Studies (Insee). Debt rose €59.6 billion in the second quarter of 2026 after increasing €75.8 billion in the first quarter, when it stood at 117.5% of GDP. France also plans to borrow a record €340 billion on bond markets in 2027, €28 billion more than this year, to finance spending and repay maturing debt. The Agence France Trésor (AFT), which manages government borrowing, said it would issue medium- and long-term bonds. Ten-year yields reached 4.8% on the secondary market, while the government forecasts a 4.3% rate for 2027; investors have recently demanded rates close to 5%, levels last seen during the global financial crisis. Debt-service costs are projected at around €79 billion in 2026 and €91 billion in 2027. France’s deficit was 5.1% of GDP last year and is forecast at 5.4% this year, above the European Union’s 3% limit. Prime Minister Sébastien Lecornu plans to reduce the deficit without austerity, but presidential elections just months away could make spending cuts and structural reforms more difficult.