Paris: Roland Lescure, the French Minister of Economy, warned today that his country's public debt could reach a record level in 2027.
Lescure stated in press remarks that next year's budget project anticipates the debt reaching a record level of 121.7 percent of GDP, following the recent downgrade of France's sovereign rating by Scope Ratings.
He added that the government needs to act now, particularly regarding the budget, and that making decisions at this time would help avoid having to take more difficult measures in the future.
The French minister emphasized that he wants to "act decisively" in order to maintain the financial stability of his country and preserve "France's signature," referring to confidence in its ability to meet its financial commitments.
The interest rate on French ten-year borrowing is about 4.50 percent, while the spread between French and German interest rates has risen to one percentage point, a level that reflects investors' concerns about the state of France's public finances.
These developments present the government and parliament with the challenge of taking measures to curb spending and achieve savings, which would help contain debt levels and maintain France's ability to finance its needs in the markets.
