Politics · France · 7 hrs ago
France faces higher borrowing costs as budget concerns grow
French Finance Minister Roland Lescure says rising borrowing costs are an alarm signal for the country.
France can still sell government bonds, but investors are demanding higher interest rates because of concerns about its debt and budget.
The government’s proposal projects public debt reaching 121.7% of GDP in 2027, compared with 119% at the end of June.
It also aims to reduce the budget deficit to 5% of GDP next year from an estimated 5.4% in 2026.
Passing the budget is difficult because the government lacks a majority in the lower house of parliament.
The debate matters because higher interest payments leave the government less room to fund other priorities, and Lescure says spending on health and pensions must be controlled.
The budget still needs to get through parliament, where political tensions and the approaching presidential election add to the challenge.
Finance Minister Roland Lescure said higher borrowing costs are an alarm signal as France faces concerns over its debt and budget.
France’s 10-year government bond yield had neared 5%, while public debt is projected to reach 121.7% of GDP in 2027 under the government’s proposal.
Lescure defended the budget, saying spending priorities could change but any additional support for young people would need to be balanced.
Between 160,000 and 480,000 high school students demonstrated on Tuesday to demand more resources for public education.
- Who
- Finance Minister Roland Lescure, the French government and protesting high school students.
- What
- Lescure defended the proposed budget as borrowing costs rose and students called for more education funding.
- When
- Wednesday, October 14, 2026; the student demonstrations took place on Tuesday.
- Where
- France.
- Why
- Students sought more resources for public education. The government faces concerns over debt and the budget’s sustainability.
French government
High school students
Education spending
French government
Lescure said the government was not closed to giving more support to young people, but any increase would need to be balanced.
High school students
They demonstrated to demand more resources for public education.
Between 160,000 and 480,000 high school students demonstrated in France to demand more resources for public education.
Lescure told franceinfo that France still had market confidence but borrowing costs were higher and that this was an alarm signal.
- 2027 public debt projection
- 121.7% of GDP under the government’s budget proposal
- Debt at end of June
- 119% of GDP
- 10-year French government bond yield
- Near 5%
- High school demonstrators
- Between 160,000 and 480,000
- Budget deficit target for 2027
- 5% of GDP, down from an estimated 5.4% for 2026
2 sources
What people are saying
But it costs us more, and that is an alarm signal we all need to take on board.
In front of every plus, there must be a minus.