French debt (credits: Adobe Stock)
With a public debt which reaches 114 % of the gross domestic product (GDP) in the first quarter of 2025, France crossed a worrying threshold which fuels the debate on the sustainability of public finances and the upcoming budgetary choices.
The question of debt is no longer just an economic issue reserved for experts, it becomes a central subject of concern for a majority of French people. Let’s discover where this debt comes from, how it is funded, by whom, and more in this article.
What is public debt?
Public debt represents all of the loans which are not yet reimbursed by the State (81 %), social security administrations (9 %), local public administrations (8 %) and various organizations of central administration (2 %). At European level, it is this harmonized definition, called “in the sense of Maastricht”, which is used to allow the comparison between countries.
Concretely, when a country does not have enough resources (taxes, etc.) to cover its expenses or investments, it must borrow, thus creating a budget deficit which fuel this public debt. In France, the debt burden corresponds to almost 7 % of the government’s budget.
Where is France?
In 2024, French public finances were marked by a large imbalance: expenses reached 1,670 billion euros, while the revenues amounted to 1,502 billion. The deficit therefore reached 168.6 billion euros, or 5.8 % of GDP, a figure that goes beyond the 3 % threshold set by European rules.
Public debt continues its progression. In 2024, it reached 3,305 billion euros, or 113.2 % of GDP. It was 109.8 % of GDP in 2023 and 111.9 % at the end of 2022. In comparison, before the Pandemic of COVID-19, it amounted to 97.9 % of GDP in 2019. The trend was confirmed in 2025.
Insee debt graphic
According to the latest figures published by INSEE1, French public debt would have reached 3,345.8 billion euros at the end of T1 2025, representing 114 % of GDP. This increase is notably due to an increase in state debt and that of social security administrations, while the debt of other public bodies remains generally stable. Local communities also see their debt progress.
On a European scale, the French situation remains worrying. On average, the raw public debt of public administrations in the euro zone reaches 88 %of GDP in early 2025. However France is among the most indebted countries in the European Union, behind Greece (152.5 %) and Italy (137.9 %), but ahead of Belgium (106.8 %) and Spain (103.5 %). In contrast, some countries such as Bulgaria, Estonia and Denmark display significantly lower debt levels, less than 30 % of GDP.
Debt graphic
Who finances the French public debt?
To finance this debt, France regularly issues securities on the financial markets, mainly obligations called OAT (assimilable bonds of the Treasury), which may have reimbursement durations ranging from two to fifty years. These titles are purchased by various actors, both French and foreign.
French debt is distributed in a balanced way between different actors. About a quarter is held by French investors, another quarter by investors in the euro zone and a third quarter by those located outside the euro zone. The last quarter is held by the Banque de France.
The profile of the holders of this debt is varied. We find in particular banks, insurance companies or even pension funds, especially in countries where pensions are partly funded by capitalization.
The urgency of reducing French debt: a debate which is essential
Faced with a public debt which now reaches 114 % of GDP, the debate on the need to reduce it becomes more and more urgent, both politically and within French society.
A recent study carried out by the Elabe2 Institute reveals that this feeling of urgency is widely shared by the population. According to this survey, 82 % of French people believe that it is urgent to reduce public debt.
The continuous increase in debt from the COVVI-19 pandemic fueled a concern about the sustainability of long-term French public finances. The rise in interest rates with the health crisis also made the cost of the debt heavier for the state. Finally, the French are increasingly sensitive to the question of budgetary responsibility, in a context where difficult choices must constantly be made between reduction in expenses and increase in taxes.
Social pressure to reduce debt is therefore part of a climate where confidence in the ability of public authorities to control finances is crumbling. For decision -makers, this dynamic strengthens the need to initiate a clear debate on budgetary priorities and possible levers to gradually bring back the deficit and debt to a more sustainable trajectory.
The subject of public debt is therefore now established as a central issue in the social, economic and political debate in France.