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Protests and reforms: France’s rising debt costs threaten stability
France’s government is proposing billions of euros for schools and universities as protests sweep the country, but mounting debt and rising borrowing costs leave it with little room to spend. The combination of political instability, large deficits and higher interest rates is putting pressure on public finances and could further weaken confidence in the French economy.
Public debt is around 120% of GDP, compared with roughly 65% in Germany, and France pays nearly 1.6 percentage points more than Germany to borrow for ten years. Its debt interest bill is forecast to exceed €79 billion in 2026 and €91 billion in 2027, potentially reaching €125 billion to €132 billion by 2030. France has not balanced its national budget since 1974, while the risk premium on its bonds has more than doubled since June 2026.
In short
- France plans billions in education spending amid protests.
- Debt interest costs are rising sharply.
- Political instability is adding to pressure on borrowing.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
France should invest in schools and universities despite its debt pressures: education can strengthen skills, productivity and social mobility, supporting future growth and the tax base. With protests reflecting public concern, targeted spending may also help address unmet needs and sustain confidence in public institutions.
The case against
With debt around 120% of GDP and borrowing costs rising, further spending could add to deficits and leave less money for public services as interest payments grow. Advocates of restraint would argue that credible plans to control borrowing are needed to reassure investors, limit future debt costs and preserve room to respond to economic shocks.
Europe Government Politics World