(France, 28th) The French National Institute of Statistics and Economic Studies (INSEE) released the latest data this week, showing that France’s national debt in the second quarter of 2025 has soared to €3.4 trillion (16.76 trillion ringgit), equivalent to 115.6% of Gross Domestic Product (GDP), putting it among the lower ranks of European countries.
According to Central News Agency, this figure breaks the record of €3.345 trillion (16.49 trillion ringgit) in the first quarter, which was already 114% of GDP. In just the second quarter alone, French debt increased by €70.9 billion (349.5 billion ringgit).
Le Figaro reported that due to the failure to implement structural reforms like those of neighboring countries, France’s debt is surging. The recently retired former Prime Minister Bayrou described this debt as “like the Himalayas,” saying it has surged by €1 trillion (4.93 trillion ringgit) in less than a decade.
On the 23rd of this month, OECD Chief Economist Pereira warned: “France should be extremely cautious in handling its finances in the coming years. It must learn from the experiences of countries like Italy and Portugal, which have restored budgetary discipline, while France’s (debt levels) continue to rise.”
Thus, in terms of debt-to-GDP ratio, France is currently the third most indebted country in the European Union (EU).
On the 12th of this month, credit rating agency Fitch downgraded France’s credit rating from AA- to A+, citing political crisis and fiscal issues. Meanwhile, just-appointed French Prime Minister Le Cornu is under intense pressure as he seeks consensus on the 2026 budget proposal.
However, negotiations between Le Cornu and opposition parties have yet to show significant progress; major unions have threatened to strike and demonstrate again on October 2; meanwhile, business groups have announced a meeting on October 13 to protest potential tax increases.
According to Central News Agency, this figure breaks the record of €3.345 trillion (16.49 trillion ringgit) in the first quarter, which was already 114% of GDP. In just the second quarter alone, French debt increased by €70.9 billion (349.5 billion ringgit).
Le Figaro reported that due to the failure to implement structural reforms like those of neighboring countries, France’s debt is surging. The recently retired former Prime Minister Bayrou described this debt as “like the Himalayas,” saying it has surged by €1 trillion (4.93 trillion ringgit) in less than a decade.
On the 23rd of this month, OECD Chief Economist Pereira warned: “France should be extremely cautious in handling its finances in the coming years. It must learn from the experiences of countries like Italy and Portugal, which have restored budgetary discipline, while France’s (debt levels) continue to rise.”
Thus, in terms of debt-to-GDP ratio, France is currently the third most indebted country in the European Union (EU).
On the 12th of this month, credit rating agency Fitch downgraded France’s credit rating from AA- to A+, citing political crisis and fiscal issues. Meanwhile, just-appointed French Prime Minister Le Cornu is under intense pressure as he seeks consensus on the 2026 budget proposal.
However, negotiations between Le Cornu and opposition parties have yet to show significant progress; major unions have threatened to strike and demonstrate again on October 2; meanwhile, business groups have announced a meeting on October 13 to protest potential tax increases.