France has not recorded a single budget surplus since 1974, contrasting sharply with international peers that have sustained years of positive primary balances to manage public debt.
Understanding public finances requires separating the primary balance from the total budget balance, much like a household assessing earnings against daily expenses before paying off loan installments, JeChange reported.
- France posted a primary deficit of 3.0% of GDP and an overall deficit of 5.1% of GDP in 2025, according to data from the International Monetary Fund and Eurostat.
- General government debt reached 119.1% of GDP for France in the second quarter of 2026, compared to an 89.3% average across the eurozone.
- French 10-year government bond yields hit 4.96% in late October 2026, trading higher than those of Portugal at 3.90% and Greece at 4.33%.
According to the International Monetary Fund Fiscal Monitor from October 2026, several nations maintained extended periods of primary surpluses before interest payments. Canada recorded 14 years of primary surpluses from 1995 to 2008, while Sweden registered 12 years between 1997 and 2008, including one year at balance.
More recently, Ireland posted nine years of primary surpluses across two distinct windows from 2015 to 2019 and 2022 to 2025. Portugal achieved eight years of primary surpluses during the same modern intervals, and Greece logged seven years.
A primary surplus measures government revenue minus public spending excluding debt interest payments. When factoring in interest obligations, the final budget balance often falls into deficit.
In 2025, Greece reported a primary surplus of +4.9% of GDP and a total balance of +2.0% after interest. Portugal recorded +2.4% before interest and +0.7% after interest, while Ireland registered +2.2% and +1.8% respectively, based on figures from the Eurostat press release.
French public administrations achieved a brief primary surplus window from 1998 to 2001, ranging between +0.5% and +1.3% of GDP. However, the central state budget has remained in deficit every year since 1975, with the last surplus recorded in 1974, according to records from the Cour des comptes.
| Country | Primary Balance (% GDP, 2025) | Total Balance (% GDP, 2025) |
|---|---|---|
| Greece | +4.9% | +2.0% |
| Portugal | +2.4% | +0.7% |
| Ireland | +2.2% | +1.8% |
| France | -3.0% | -5.1% |
The yield on the 10-year French government bond, known as an OAT, serves as a vital benchmark for the broader financial system. Bank lending rates, fixed-rate property mortgages, and life insurance fund returns adjust in response to these sovereign debt costs.
By late October 2026, the spread between French and German 10-year borrowing costs widened to approximately 156 basis points, with the French benchmark rate climbing to 4.96%. Meanwhile, French general government interest expenditures totaled 64.7 billion euros in 2025, according to INSEE.
