The spread between Paris and Berlin government bonds widened to 100 basis points for the first time since 2012. Investor caution drove French 10 year yields to 4.56%, the highest level since 2008, and led Scope to cut the national credit rating from AA- to A+. The finance ministry projects the public debt to GDP ratio will climb to 119.3% in 2026 and 121.7% in 2027.

Prime Minister Lecornu identified a €54 billion budgetary effort for 2027 to maintain a budget deficit of 5.0% of GDP. Without corrective measures, the 2027 deficit would exceed 6.5% of GDP, and higher interest rates add €10 billion to annual debt servicing costs. Government officials stated the draft 2027 budget bill will meet European Union recommendations.