France’s Assembly Rejects 2027 Budget Bill as Q2 Debt Hits 119% of GDP

France’s National Assembly rejected the revenue section of the draft 2027 finance bill on Nov. 4, so the Assembly considered the bill rejected at first reading as public debt reached 119.0% of gross domestic product in Q2 2026.

The roll call showed 458 votes against the section, none in favor and two abstentions.

Public debt totaled €3.5955 trillion at the end of Q2, equal to 119.0% of GDP. The ratio was 117.5% at the end of Q1. France’s public deficit for 2025 was €152.5 billion, or 5.1% of GDP.

The draft 2027 budget set a deficit target of 5.0% of GDP. Fitch Ratings’ forecast for 2027 is 5.5%, half a percentage point above that target. Fitch projected France’s debt would reach about 124% of GDP in 2028; that figure is a forecast, not a reported result.

On Oct. 30, Fitch affirmed France’s A+ rating and moved its outlook to negative from stable. The agency cited “weaker growth, higher borrowing costs and a wider deficit” since its August review. The outlook change did not include a rating downgrade.

France has been subject to the European Commission’s Excessive Deficit Procedure since 2024. The budget vote comes as the government’s plan sets a 2027 deficit target below both the 2025 deficit and Fitch’s 2027 projection.