Business · Economy · 2 days ago
France’s debt risks could spread across Europe, UnHerd warns
France owes €3.5 trillion, about 120% of the value of its economy in a year.
Investors are demanding higher returns to lend to France than to Germany, a sign they see more risk.
UnHerd warns that if investors lose confidence in France, borrowing costs could rise in other highly indebted European countries too.
Higher borrowing costs can make it harder for governments to manage their debts.
France’s public debt has doubled since 2008 and stands at €3.5 trillion, about 120% of GDP, according to Vedomosti’s report of UnHerd.
UnHerd warns that doubts about France’s ability to control its debt could spread to other highly indebted EU countries and raise borrowing costs across Europe.
The gap between French and German 10-year government bond yields has widened to 1.4 percentage points.
UnHerd says a proposal by French politician Jean-Luc Mélenchon to write off 18% of the country’s public debt could prompt a bond sell-off.
The article argues against European Central Bank purchases of French bonds and calls for spending cuts and a multi-year debt-reduction plan.
- Who
- UnHerd warns that France’s debt problems could affect other European countries.
- What
- France’s debt risks could spread across Europe, raising government borrowing costs.
- When
- The report was published on 9 October 2026.
- Where
- France and the wider European Union.
- Why
- UnHerd says investors could lose confidence in other highly indebted EU countries if they doubt Paris can control its debt and spending.
UnHerd
Jean-Luc Mélenchon
Debt policy
UnHerd
UnHerd warns that Mélenchon’s proposal to write off 18% of France’s public debt could trigger a bond sell-off and raise borrowing costs.
Jean-Luc Mélenchon
Mélenchon has proposed writing off 18% of France’s public debt.
No direct quotes in the coverage so far.
France last had a balanced budget, according to the article.
France’s public debt began a period in which it doubled to €3.5 trillion, according to the article.
The International Monetary Fund urged France to develop a multi-year fiscal consolidation plan.
Vedomosti published its report on UnHerd’s warning about French debt risks.
- French public debt
- €3.5 trillion, about 120% of GDP
- Bond-yield gap
- France-Germany 10-year government bonds: 1.4 percentage points
- Mélenchon proposal
- Write off 18% of France’s public debt
- Deficit target urged by UnHerd
- 3% of GDP or lower in 2027
- Government proposal
- Reduce the deficit to 5% of GDP in 2027
Sources
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