France said its 2027 budget draft will comply with European Commission guidance even as the country’s debt burden is expected to rise above 120% of GDP. The finance ministry said net primary spending is projected to increase 0.7% versus the Commission’s recommended cap of 1.2%. Citing weak growth and higher interest costs, the government said the fiscal trajectory has already deteriorated: this year’s deficit is now expected to widen to 5.4% of GDP versus the fiscal law target of about 5%. The d

France said its 2027 budget draft will comply with European Commission guidance even as the country’s debt burden is expected to rise above 120% of GDP. The finance ministry said net primary spending is projected to increase 0.7% versus the Commission’s recommended cap of 1.2%. Citing weak growth and higher interest costs, the government said the fiscal trajectory has already deteriorated: this year’s deficit is now expected to widen to 5.4% of GDP versus the fiscal law target of about 5%. The draft submitted to the public finance oversight body targets a reduction in spending-to-GDP to 56.9% in 2027 (from 57.1% in 2026) and sets tax revenue at 44.2% of GDP. Government forecasts put the debt ratio at 119.3% this year, 115.7% in 2025 and 121.7% in 2027.