France plans to issue €340 billion in medium- and long-term debt securities in 2027, net of buybacks. The government’s projected financing needs would reach €339.7 billion, €28 billion more than the revised requirement for 2026, according to the French Treasury Agency (AFT), which published its forecasts on September 29.
Old loans are coming due
The increase is mainly due to the repayment of maturing debt securities. Medium- and long-term debt repayments are expected to rise by €19.4 billion in 2027. The French Treasury Agency (AFT) indicates that several loans taken out in recent years, particularly to address the health and energy crises, must be gradually repaid.
Another factor is the end, scheduled for the end of 2026, of European funding for the national recovery and resilience plan (PNRR). The state will then have to seek resources on the markets to take over. This funding amounted to €6.1 billion in 2026, according to the AFT.
A financing need separate from the amount of the emissions
The €339.7 billion figure represents the government’s projected financing needs. To meet these needs, the French Treasury Agency (AFT) anticipates €340 billion in medium- and long-term debt issuance, after accounting for buybacks. The agency also forecasts a €2.2 billion increase in outstanding short-term securities.
For 2026, the AFT has revised its financing requirement to €311.7 billion, while net medium- and long-term issuance after buybacks remains fixed at €310 billion. These two amounts therefore do not refer to the same thing.
The debt burden would increase
The French Treasury Agency (AFT) estimates the government debt burden at €72.9 billion in 2027. For 2026, the agency now forecasts €62.6 billion, compared to the initial estimate of €59.3 billion in the budget law. The Ministry of the Economy, for its part, uses a different calculation method and estimates €65 billion for 2026.
These figures concern the national debt, not that of all public administrations: they therefore do not include social security or local authorities. The French Treasury (AFT) specifies that the draft budget for 2027 is to be presented on October 1st, with a public deficit target set at 5% of GDP.
Source: 20 Minutes – Front Page (www.20minutes.fr)
Original article: See the original source
Author: 20 Minutes with AFP
