PARIS, Sept 29 (Bernama-dpa) -- France’s public debt rose to 119 per cent at the end of the second quarter, reaching a new record high, according to figures published by the statistics agency INSEE on Tuesday.
Total debt, measured as a proportion of gross domestic product (GDP), stood at just under €3.6 trillion (US$4.08 trillion), another all-time high, reported German news agency dpa.
It comes after the government recently said it expects public debt to rise to 121.7 per cent of GDP next year.
The new debt figures are putting further pressure on Prime Minister Sébastien Lecornu, who plans to present a draft budget on Thursday featuring savings running into the billions.
Getting the budget through parliament is likely to be a major challenge for President Emmanuel Macron’s centrist camp, which does not hold a majority.
As in the previous year, Lecornu is expected to reach out to the Socialists to find a compromise. However, with the next presidential election scheduled for April 18, 2027, radical cuts are not expected.
The high level of debt in the eurozone’s second-largest economy is a regular source of concern for France's European partners.
Paris has been breaching EU rules on limiting new borrowing for some time, and the government is forecasting a budget deficit of 5.4 per cent this year, and 5 per cent for next year, well above the EU limit of 3 per cent.
However, France has managed to offset the high level of debt with robust economic performance.
--BERNAMA-dpa