France is facing the threat of gradual economic “suffocation” unless it reins in soaring public debt and persistent budget deficits, the governor of the Bank of France has warned.
Speaking to La Croix on Saturday, François Villeroy de Galhau said the government’s deficit—forecast at 5.4% of GDP in 2025, only slightly below last year’s 5.8%—must be reduced to 3% by 2029 to preserve fiscal credibility. He cautioned that debt-servicing costs, which stood at €30 billion in 2020, are expected to exceed €100 billion by the end of the decade, straining public finances.
“Our country is not threatened with bankruptcy, but with gradual suffocation,” Villeroy said, warning that rising interest rates are squeezing households and businesses while limiting funding for key priorities such as defense and the green transition. France’s public debt now totals €3.3 trillion—around 115% of GDP.
The warning follows a series of downgrades from major credit rating agencies. Moody’s recently shifted France’s outlook from stable to negative, citing political fragmentation, while both Fitch and S&P Global Ratings earlier cut France’s rating to A+, flagging fiscal and governance risks.
Villeroy noted that Moody’s remains the only major agency maintaining France at a double-A level, calling it a sign that the country “still retains strengths, even if the outlook is negative.” He maintained a growth forecast of around 0.7% for 2025 and highlighted France’s record of job creation, with unemployment currently at about 7.5%.
Image credit: Corentin Jaunault
NZ in 10 years
Or sooner if the Labour traveling clown show gets back in
With its leaky home economic policies
More arms funding and technical support to Ukraine is the answer
Won’t end well
When things get bad enough Macron will be out
Until then suffer Your Own inadequacies and failings
NZ is still a great country but came with baggage at a cost
Crime unemployment welfare under achievement