“Debt is our enemy.” In 2007, François Bayrou made this the central theme of his unsuccessful campaign for the Elysée. Seventeen years later, the enemy has still not been vanquished. On the contrary, the new prime minister has arrived in the post to find the enemy stockier, stronger and more threatening than ever. From €1.2 trillion in 2007, French public debt rose to €3.3 trillion by the end of the third quarter of 2024, or 113.7% of gross domestic product (GDP), according to figures unveiled on Friday, December 20 by the French National Institute for Statistics and Economic Studies (INSEE). And there’s more to come.
Having risen by €71.7 billion in three months, the total debt of the state, local authorities and social security is set to continue rising for at least the next five years, according to Moody’s latest analysis of the situation in France, released on Wednesday. It should represent 120% of GDP in 2027. It is only in 2030 that it may be able to begin its descent, said the American rating agency. This is due to France’s chronic inability to tighten its purse strings, a phenomenon amplified by the current political crisis.
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