France's national debt reaches nearly €3.6 trillion, standing at 119% of GDP

PARIS — France accrued nearly €3.6 trillion in debt amounting to 119% of gross domestic product as of the end of June, national statistics agency Insee said Tuesday.

The figures were released as pessimism mounts over the future of the French economy, whose debt levels are starting to get closer to those of Italy and Greece — two of the eurozone’s most indebted countries — while growth stagnates.

French Prime Minister Sébastien Lecornu said earlier this month that he plans to propose savings worth €54 billion in the 2027 budget, which will be formally unveiled on Thursday. Lecornu has pledged to bring the budget deficit — the difference between what a country spends and collect in taxes every year — down to 5% of the GDP next year, but it’s unclear if his minority government will be able to muster enough support for its spending plans.

France had set a 5% deficit target this year, but will likely miss it because of limited economic growth and rising energy prices linked to the war in the Middle East.

Even before Tuesday’s figures were released, independent auditors and international institutions considered it unrealistic for France to meet its pledge to bring its deficit below 3% of GDP in line with EU rules by 2029.

The 2027 budget, the last one the government will debate before of next year’s presidential election, has faced criticism from Lecornu’s left-wing opponents. But the far-right National Rally, whose candidate Marine Le Pen is leading the polls, has sent mixed signals on its plans.