The French 10 year yield climbed to 4.56%, the highest level since 2008, and the spread over German debt hit 100 basis points for the first time since 2012. PM Lecornu stated that higher interest rates will add €10 billion to debt servicing costs. France's government targets a budgetary effort of around €54 billion for 2027 to curb fiscal decline.
Tuesday, October 20, 2026
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France Projects Public Debt to Hit 121.7% of GDP by 2027 After Scope Downgrade to A+
Global Markets31 days ago
A French Finance Ministry forecast places the public-debt-to-GDP ratio at 119.3% in 2026 before it reaches a peak the following year. The ratio is projected to hit 121.7% by 2027, with budget deficit targets of 5.4% in 2026 and 5.0% in 2027. Scope Ratings lowered the country's credit rating to A+ from AA- on Sept. 18, and Prime Minister Lecornu told Le Figaro that the 2027 deficit would exceed 6.5% of GDP without corrective measures.
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