France's public debt surged to 113.0% of GDP in 2024, a notable increase from 109.8% in 2023, making it one of the highest in the Eurozone.

Despite the rising debt, the 2024 deficit was slightly better than the government's forecast of 6.0%, although it remains a significant concern.

Only Greece and Italy have higher public debt levels than France, which also suffers from the worst public deficit performance in the Eurozone.

Prime Minister Francois Bayrou's administration is under pressure to address the deficit, which remains above the Eurozone's three-percent limit, posing risks to financial stability.

The French government aims to reduce the deficit to 5.4% of GDP by 2025 and below the EU limit of 3% by 2029, although achieving this goal is complicated by a fragmented political landscape.

In response to rising economic pressures, the government has already implemented approximately €50 billion in spending cuts this year.

Economic forecasts are bleak, with the Bank of France predicting a growth rate of only 0.7% for 2025, down from the government's projection of 0.9%.

The government faces difficulties in financing increased military spending, as President Emmanuel Macron proposes to raise military expenditure to around 3-3.5% of GDP without increasing taxes.

While the deficit could be slightly better than anticipated, it remains far from the desired 4.4% estimated in autumn 2023, primarily due to slower revenue growth.

Despite these challenges, some economists express optimism about France's long-term growth prospects, citing European investment plans and favorable economic conditions.

Finance Minister Eric Lombard acknowledged that the current financial figures are 'not good news,' as the deficit continues to be a pressing issue.

Government spokesperson Sophie Primas described the preparation of the 2026 budget as a 'nightmare' due to the significant financial challenges ahead.