# France’s Budget Fight Puts Government at Risk as Debt Costs Rise

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/23579
Published: 2026-09-24T05:27:41.000Z
Updated: 2026-09-24T05:27:41.000Z

France is entering a high-stakes 2027 budget fight as elevated borrowing costs and a large deficit pressure Prime Minister Sébastien Lecornu’s government and European markets.

France’s public deficit reached 5.1% of gross domestic product in 2025, while public debt rose to 115.7% of GDP. The government’s 2026 budget targets a deficit of 5% of GDP, well above the European Union’s 3% threshold.

The 10-year French government bond yield stood at 4.52% on Sept. 15, keeping debt-servicing costs in focus as lawmakers debate spending reductions and fiscal consolidation.

The National Assembly has scheduled a final vote on the 2027 finance bill for Nov. 17. Lecornu’s government must negotiate with a fragmented parliament, raising the risk that efforts to reduce spending could destabilize the government.

Mujtaba Rahman warned that a tough 2027 budget “risks toppling the government” despite broad opposition to a political crisis before next spring’s presidential election.

France is seeking to stabilize its public finances and bring its deficit back below the EU limit. The scheduled November vote is the next major test of whether the government can secure support for its fiscal plans.