S&P expects France’s gross general government debt to reach 121% of GDP by 2028. The agency emphasized that, despite the 2026 draft budget being submitted to parliament, uncertainty in government finances remains high.
The rating agency expects that policy uncertainty will negatively impact investment activity, private consumption, and economic growth, affecting the French economy.
S&P noted that without significant additional measures to reduce the budget deficit, France’s budget consolidation could proceed more slowly than previously anticipated. The agency forecasts that budget deficits in France will remain high over the next three years.
