France’s public debt reaches “stratospheric level” (only Italy and Greece are worse)

In less than 10 years, France’s public debt has risen by more than 1 billion euros and stands at more than 3 billion euros, a “stratospheric level” that could require an austerity plan.

France’s public debt reached “highest level ever reached in absolute value”, standing in the 3.3 billion euros in the third quarter of 2024, according to data released by the newspaper.

The value constitutes 113,7% do PIB (Gross Domestic Product), with public debt rising by more than R$71 billion in just three months. This increase is mainly due to State spending, but also to the increase in debts of Social Security administrations and public companies.

In 2004, French public debt was 1,082 million euros. In 20 years, “more than tripled” and in less than 10 years, it rose by more than R$1 billion, points out the aforementioned newspaper.

During the seven years of Presidency of , “increased by more than 1 billion euros”, also driven by covid-19 pandemicsays the same newspaper.

Only Italy and Greece are worse off than France

“France is the only country in Europe that has not reduced its debt” since the pandemic, as highlighted by the Governor of the Bank of France, François Villeroy de Galhau, in statements to Le Figaro.

“So Greece and Italy have worse results in measuring debt in relation to GDP”, according to Eurostat data cited by the newspaper.

The public debt of Italy in the second quarter of 2024, it is approximately 2,952 million euros, which represents approximately 137% do PIB.

In Greece, in the same period, it stands at 369 billion euros, around 163% do PIB.

Portugal had at the end of November 2024, around 300 billion euros of public debt, representing around 100% do PIB.

In the second quarter of 2024, the Spanish public debt was around 1.6 billion euros, that is, around 107% do PIB.

A Germany has a debt of approximately 2,635 million euros, around 61% do PIBone of the lowest values ​​in the Organization for Economic Co-operation and Development (OECD) countries.

France needs “weight loss treatment”

Containing the public deficit is one of several problems that new French Prime Minister François Bayrou will have to resolve.

O French public deficit rose to 162.4 million euros in 2024, i.e. 6,2 % do PIB.

In comparison, Portugal had a public deficit of 3.8 million euros in October 2024, which represents around 1,2% do PIB.

Bayrou has already said that he will draw up “a plan to rebalance Public Finances” within ten years, pointing to the immediate goal of reducing the deficit to 5%.

But the situation is so negative that it has led experts to admit that France may need an austerity plan, or as Le Figaro says, “a weight loss treatment”.