France’s budget deficit reached 106.8 billion euros in the first half of 2026, a deterioration of 6.4 billion euros compared to the same period in 2025, representing a 6.4 % year-on-year increase. The debt burden is now estimated at 59 billion euros for 2026, surpassing for the first time the Defense budget of 57.1 billion euros, making it the largest state expenditure item. With 106.8 billion euros already spent by the end of June, the State has consumed nearly 79 % of its annual deficit target of 134.6 billion euros with six months still to go. Public debt has crossed 117.5 % of GDP, a level at which the apparent debt rate exceeds economic growth, recreating a financial snowball effect. The 10-year OAT rate, the benchmark for French government borrowing, stood at around 3.75 % in mid-2026, making each new bond issuance more expensive than the last.
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