France's public debt, and interest rates on new loans, continue to rise, thus, next year the country's debt burden will reach 74 billion euros.
According to Modern.az, this was stated by Pierre Moscovici, head of the French Court of Accounts, in an interview with "La Tribune Dimanche" newspaper.
"We are approaching a completely unprecedented point in our public finance history: The debt burden will soon become the state's main expenditure item. This means there will be less money for the positive priorities the French expect: financing the environmental and digital transition, and defense", he emphasized.
As Moscovici noted, to support the country's economy, official Paris will have to borrow 310 billion euros at a time when interest rates on debt are rising for France.
At the same time, he called the downgrade of the country's credit rating by international agencies "insignificant" and noted that these procedures actually reflect realities already formed in the market in the form of rising interest rates:
"We are still receiving loans, but at increasingly higher prices. We are the largest borrowers in the debt market, which will become more competitive with the entry of Germany, which will finance defense investments in 2026".
The head of the Court of Accounts emphasized that reducing the budget deficit is a priority for France, which is the third country in the eurozone by debt volume. The 2026 budget draft was calculated taking into account an increase in public debt to 118% of the country's GDP, or 3.5 trillion euros, while also considering a reduction in the budget deficit from 5.4% to 4.6% of GDP.
Moscovici also announced that the social security deficit has doubled since 2023 and will amount to 23 billion euros in 2025: "I do not consider France's financial situation catastrophic. The country is solvent. Even if it faces a financial crisis in a few years, it is not on the brink of this crisis".
