# France Faces Debt Crisis Amid Rising Deficits and Protests

- Topic: business
- Source: [CNBC](https://www.cnbc.com/2026/10/13/france-2027-budget-debt.html)
- Published: 2026-10-13
- Original: https://www.cnbc.com/2026/10/13/france-2027-budget-debt.html
- Language: en
- Image: https://image.cnbcfm.com/api/v1/image/108398461-1791814923062-gettyimages-2298287863-AA_06102026_2981670.jpeg?v=1791814942&w=1920&h=1080

## At a glance

- France’s 2025 budget deficit hit 5.1% of GDP while debt climbed to 115.6% of GDP, the highest in Europe.
- Parliament began debating the 2027 budget on Tuesday, as thousands protest for better education funding ahead of next year's presidential election.
- French borrowing costs have surged to the highest levels in almost a quarter of a century, widening the yield gap with German bonds.
- Economists warn that the European Central Bank is unlikely to intervene to bail out France, risking a contagion that could threaten the euro zone.

## Sources

- [CNBC](https://www.cnbc.com/2026/10/13/france-2027-budget-debt.html)

## The story

France’s 2025 budget deficit reached 5.1% of GDP while its debt climbed to 115.6% of GDP, the highest in Europe. On Tuesday, Parliament began debating the 2027 budget as thousands of students marched in protest over underfunded education and other public services. The country’s borrowing costs have surged to the highest levels in almost a quarter of a century, widening the yield gap with German bonds. Economists warn that the European Central Bank is unlikely to intervene to bail out France, raising fears of a contagion that could threaten the euro zone. France’s high deficit and debt levels have drawn comparisons to the sovereign debt crisis that hit Greece, Ireland, Portugal, Spain and Italy. The political cost of fiscal consolidation is intensified by the upcoming presidential election, with lawmakers reluctant to make painful spending cuts. The situation underscores the risk that France’s debt crisis could drag down the euro union if not addressed sustainably.

> Summary by Daily Read Bytes. [Read the original source](https://www.cnbc.com/2026/10/13/france-2027-budget-debt.html)