Why France's 119% National Debt Does Not Mean the Economy Will Easily Bounce Back

The risk facing the French economy is not that the state is about to collapse. Rather, it is that amid weakened growth, the government must adjust its finances, while households and businesses find it difficult to easily increase consumption and investment. More important than the sheer size of the national debt is the fact that the room for growth and policy flexibility to reduce this burden is narrowing simultaneously. According to data released by France's national statistics institute INSEE on September 29, 2026, general government debt under the Maastricht definition stood at 3.5955 trillion euros at the end of the second quarter, accounting for 119.0% of gross domestic product (GDP). This is higher than the 117.5% recorded in the previous quarter. However, this ratio is neither a figure deducting all assets held by the government nor the proportion of debt that must be repaid immed…