⚡️🇫🇷 — France's public debt is set to reach its highest level since 1978, hitting 119.3% of GDP in 2026 and 121.7% in 2027, as the government prepares a €54 billion package of spending cuts, according to the Finance Ministry, cited by Euronews.

➡️ A ministry source said the rise was "automatic" as "a consequence of a deficit that remains high." Under EU rules, the deficit is meant to be no more than 3% of GDP, but it came in at 5.1% last year and is forecast to hit 5.4% this year before dropping to 5% in 2027.

France is the third most indebted country in the eurozone, behind Greece and Italy. Prime Minister Sébastien Lecornu outlined €54 billion ($62bn) in adjustments and cuts for the 2027 budget, leaving sensitive measures such as reducing tax breaks for pensioners to parliament.

The head of the High Council of Public Finances, Amélie de Montchalin, said there was still time to correct course: "The crisis is neither certain nor guaranteed — nor is it the only outcome. France is not doomed, provided the choices made are swift and responsible."

Growth forecasts for 2026 have been revised down, with the French economy hit by weak consumer spending and the surge in energy prices from the US-Israeli war against Iran.

⭐️ Follow @MaxOsintIntel