France's debt and budget crisis

France's minority government is trying to pass an austerity budget for 2027 after the National Assembly unanimously rejected its first part on Nov 4. Ten-year borrowing costs hit their highest level since 2002 in October, and unions struck nationwide on Nov 5.

Confidence: high. Debt, deficit and yield figures come from official statistics and market data reported consistently by several outlets, and the budget vote and strike are widely documented. Protest turnout is disputed (575,000 official versus 1.6 million union claim), and analysts disagree on whether 'debt crisis' fits. · Updated 11 Nov 2026, 2pm ET

Why it matters: France owes about EUR 3.6 trillion and plans to borrow a record EUR 340 billion in 2027, and ING analysts told Euronews its debt strains are no longer seen as only a French problem after Italian and Greek spreads also widened. source

What's happening

France's public debt reached about EUR 3.6 trillion, or 119% of GDP, in the second quarter of 2026, and the government expects a 2026 deficit of 5.4% of GDP, well above the EU's 3% limit (Euronews, France 24). Prime Minister Sebastien Lecornu, who leads a government without a parliamentary majority, presented a 2027 budget on 1 October seeking about EUR 54 billion in savings and extra revenue, including freezes on public-sector pay and on all but the lowest pensions. Investors have pushed borrowing costs up: the 10-year yield briefly passed 5% on 21 October for the first time since 2002, and France's premium over Germany reached about 150 basis points, the widest since the euro-zone debt crisis (CNBC, Euronews). Student protests that began in September grew into wider cost-of-living unrest, with riots in October. Analysts quoted by CNBC and Al Jazeera say France is not close to collapse, while others warn that political deadlock before the spring 2027 presidential election leaves the debt path unresolved.

What changed recently

• On 4 November the National Assembly rejected the first part of the 2027 budget bill without a single vote in favour (CNBC, Euronews). The bill now moves to the Senate, which is due to vote on 9 December, before a joint committee seeks a compromise (Euronews). Analysts quoted by CNBC called the defeat expected and said the government may pass the budget through special powers, possibly including ordinances never used under the Fifth Republic. On 5 November unions held a nationwide strike: the Interior Ministry counted 575,000 marchers, the CGT union claimed 1.6 million, and at least 448 people were arrested (Al Jazeera). Lecornu was scheduled to meet unions and employers on 9 November to discuss wages (Al Jazeera).

Key figures

What experts say

Their views, summarized in our words.

• Charlotte de Montpellier, Economist, ING: Called the Assembly's rejection unsurprising and said the budget will have to pass without a formal vote; she sees the deficit staying above 5% next year but says France is far from a Greek-style collapse. CNBC, 2026-11-05
• Victor Lequillerier, Economist, BSI Economics: Argues that debt sustainability depends on more than the headline level, noting that France competes harder for investors inside the euro bond market; he says turning to the ECB or IMF for help is not the central scenario. Al Jazeera, 2026-10-20

Sources

• CNBC (United States), 2026-11-05: cnbc.com/2026/11/05/france-budget-debt-strikes.html
• CNBC (United States), 2026-10-21: cnbc.com/2026/10/21/france-protests-bonds-debt.html
• Euronews (France), 2026-11-05: euronews.com/2026/11/05/france-braces-for-nationwide-strike-
• Al Jazeera (Qatar), 2026-11-05: aljazeera.com/news/2026/11/5/workers-strike-across-france-hu
• Euronews (France), 2026-10-06: euronews.com/2026/10/06/frances-sovereign-debt-crisis-explai
• Al Jazeera (Qatar), 2026-10-20: aljazeera.com/economy/2026/10/20/frances-growing-debt-woes-h
• France 24 (France), 2026-10-01: france24.com/en/france/20261001-french-pm-to-present-belt-ti