France's ten-year borrowing rate hits highest level since 2002 as public debt and political uncertainty grow

On October 1, 2026, France's ten-year borrowing rate reached 4.94%, its highest level since 2002, as investors grew wary of the country's record public debt and political uncertainty ahead of the 2027 presidential election. Prime Minister Sébastien Lecornu is preparing the 2027 draft budget with plans to cut spending, but faces criticism. The gap with Germany's borrowing rate widened to its highest in 14 years. France's debt has risen from 98% of GDP in 2019 to 114% in 2020, and interest costs are expected to reach €77 billion annually.