section_path: Government finance/National debt
section_name: National debt
paragraph_text: National debt
  
  The Government of France has run a budget deficit each year since the early 1970s. As of 2021, French government debt reached an equivalent of 118.6% of French GDP.
  
  Under European Union rules, member states are supposed to limit their debt to 60% of output or be reducing the ratio structurally towards this ceiling, and run public deficits of no more than 3.0% of GDP.
  
  In late 2012, credit-rating agencies warned that growing French government debt levels risked France's AAA credit rating, raising the possibility of a future credit downgrade and subsequent higher borrowing costs for the French government. In 2012 France was downgraded by ratings agencies Moody's, Standard & Poor 's (S&P), and Fitch to an AA+ credit rating.
  
  In December 2014 France's credit rating was further downgraded by Fitch and S&P to AA.
  
  Macron, shaken by pension protests, vowed in May 2023 to build factories, boost job creations and make France more independent.
  
  The Government of France experienced a significant shift in its bond market position on September 26, 2024, when its bond yield surpassed that of Spain for the first time since 2007. The yield on 10-year French bonds reached 2.97%, slightly exceeding the yield on Spanish bonds of similar maturity, despite France's typically higher credit rating.This development raised concerns among investors about France's ability to manage its public finances effectively. France's bond yields were reported to be higher than those of Portugal and approaching levels seen in Italy and Greece, countries traditionally viewed as having higher economic risks in the Eurozone.
  
  Furthermore, France faces a budget crisis in 2024, with the deficit at risk of exceeding 6% of GDP, significantly higher than the previous government's estimate of 5.1%. Newly appointed Finance Minister Antoine Armand and Budget Minister Laurent Saint-Martin pledged to focus on spending cuts before considering tax increases to address the fiscal shortfall. Prime Minister Michel Barnier was tasked with finalizing the 2025 budget within days, amidst pressure to present realistic plans for deficit reduction.
  
  The Government of France has run a budget deficit each year since the early 1970s. As of 2021, French government debt reached an equivalent of 118.6% of French GDP.
  
  Under European Union rules, member states are supposed to limit their debt to 60% of output or be reducing the ratio structurally towards this ceiling, and run public deficits of no more than 3.0% of GDP.
  
  In late 2012, credit-rating agencies warned that growing French government debt levels risked France's AAA credit rating, raising the possibility of a future credit downgrade and subsequent higher borrowing costs for the French government. In 2012 France was downgraded by ratings agencies Moody's, Standard & Poor 's (S&P), and Fitch to an AA+ credit rating.
  
  In December 2014 France's credit rating was further downgraded by Fitch and S&P to AA.
  
  Macron, shaken by pension protests, vowed in May 2023 to build factories, boost job creations and make France more independent.
  
  The Government of France experienced a significant shift in its bond market position on September 26, 2024, when its bond yield surpassed that of Spain for the first time since 2007. The yield on 10-year French bonds reached 2.97%, slightly exceeding the yield on Spanish bonds of similar maturity, despite France's typically higher credit rating.This development raised concerns among investors about France's ability to manage its public finances effectively. France's bond yields were reported to be higher than those of Portugal and approaching levels seen in Italy and Greece, countries traditionally viewed as having higher economic risks in the Eurozone.
  
  Furthermore, France faces a budget crisis in 2024, with the deficit at risk of exceeding 6% of GDP, significantly higher than the previous government's estimate of 5.1%. Newly appointed Finance Minister Antoine Armand and Budget Minister Laurent Saint-Martin pledged to focus on spending cuts before considering tax increases to address the fiscal shortfall. Prime Minister Michel Barnier was tasked with finalizing the 2025 budget within days, amidst pressure to present realistic plans for deficit reduction.
  
  The Government of France has run a budget deficit each year since the early 1970s. As of 2021, French government debt reached an equivalent of 118.6% of French GDP.
  
  Under European Union rules, member states are supposed to limit their debt to 60% of output or be reducing the ratio structurally towards this ceiling, and run public deficits of no more than 3.0% of GDP.
  
  In late 2012, credit-rating agencies warned that growing French government debt levels risked France's AAA credit rating, raising the possibility of a future credit downgrade and subsequent higher borrowing costs for the French government. In 2012 France was downgraded by ratings agencies Moody's, Standard & Poor 's (S&P), and Fitch to an AA+ credit rating.
  
  In December 2014 France's credit rating was further downgraded by Fitch and S&P to AA.
  
  Macron, shaken by pension protests, vowed in May 2023 to build factories, boost job creations and make France more independent.
  
  The Government of France experienced a significant shift in its bond market position on September 26, 2024, when its bond yield surpassed that of Spain for the first time since 2007. The yield on 10-year French bonds reached 2.97%, slightly exceeding the yield on Spanish bonds of similar maturity, despite France's typically higher credit rating.This development raised concerns among investors about France's ability to manage its public finances effectively. France's bond yields were reported to be higher than those of Portugal and approaching levels seen in Italy and Greece, countries traditionally viewed as having higher economic risks in the Eurozone.
  
  Furthermore, France faces a budget crisis in 2024, with the deficit at risk of exceeding 6% of GDP, significantly higher than the previous government's estimate of 5.1%. Newly appointed Finance Minister Antoine Armand and Budget Minister Laurent Saint-Martin pledged to focus on spending cuts before considering tax increases to address the fiscal shortfall. Prime Minister Michel Barnier was tasked with finalizing the 2025 budget within days, amidst pressure to present realistic plans for deficit reduction.