France plans to borrow €340 billion ($385 billion) on bond markets in 2027, a record amount and €28 billion more than this year, to fund government spending and repay maturing debt. The Agence France Trésor (AFT), which manages the government’s market borrowing, said it will issue a mix of medium- and long-term bonds. The announcement came two days before the government presents its 2027 budget. France is forecasting a 4.3% interest rate on 10-year bonds in 2027, while those bonds traded at 4.8% on the secondary market Tuesday. Yields have recently reached levels last seen during the global financial crisis as investors focus on France’s debt burden and its failure to reduce deficit spending. The public deficit was 5.1% of GDP last year and is now forecast at 5.4% this year, above the European Union’s 3% limit. Higher borrowing costs increase the government’s interest bill and leave fewer funds for current spending. France’s prime minister Sébastien Lecornu has pledged to reduce the deficit next year without austerity, but presidential elections just months away could make spending cuts more difficult.