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France lost its fifth prime minister in less than two years this week, just before the 2026 budget was due to be sent to parliament.
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Sebastien Lecornu resigned Monday after announcing a cabinet that largely retained the same ministers as under his unpopular predecessor, triggering a backlash. Francois Bayrou quit last month after trying to push through a savings plan that included scrapping two public holidays and freezing public spending.
Lecornu’s resignation raised doubts over whether the 2026 budget – including much-needed debt-cutting reforms – can be passed in time. But after talking to lawmakers from a number of parties, he provided some reassurance Wednesday, acting in a caretaker capacity. “There is a willingness for France to have a budget before December 31,” he said.
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France is Europe’s biggest spender relative to its economic output. Its debt burden is behind only those of Greece and Italy, which were at the heart of the European debt crisis in 2011.
When measured by budget deficit – the gap between government spending and revenue – France is also among the most spendthrift in the European Union, according to Eurostat, the bloc’s statistics office.
Although the country has a long history of hefty overspending, since June last year bond investors have become more worried about its finances, resulting in higher borrowing costs for the already cash-strapped government.
Here’s what’s behind the recent political and market turmoil over France’s debt.
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