France debt to hit highest level since 1978

France's public debt is expected to reach its highest level since 1978 as the country's deficit remains high, the finance ministry said Saturday.

A ministry source told reporters that public debt would reach 119.3 percent of gross domestic product in 2026 and 121.7 percent in 2027. The figures are more than double the 60 percent-of-GDP reference level that European Union member states are required to aim for.

The levels are unprecedented since 1978, according to France's statistics institute Insee. The ministry source said the rise was “automatic” because the deficit remains high.

France's public deficit was 5.1 percent of GDP last year, and the government forecasts 5.4 percent this year and five percent next year. EU rules set a three percent-of-GDP limit for the annual deficit.

France has been under special EU monitoring for two years over its fiscal figures. The government has sent its draft 2027 budget measures to the High Council of Public Finances, an independent fiscal watchdog, for evaluation.

Prime Minister Sebastian Lecornu said Thursday the draft 2027 budget included 54 billion euros, or $62 billion, in adjustments and cuts. He left parliament to decide some sensitive measures, including a proposal to reduce tax breaks for pensioners, ahead of elections next year to choose the next president and government.