France plans record €340bn borrowing in 2027

France plans to borrow a record 340 billion euros on the bond market in 2027, the AFT agency that manages government borrowing said Tuesday.

The planned borrowing, equivalent to $385 billion, is about 28 billion euros more than this year. AFT said the money would help finance government spending and repay debt coming due, using a mixture of medium- and long-term bonds.

The announcement came two days before the presentation of the government's 2027 budget and as concerns over public finances have pushed French borrowing costs higher.

The French government is forecasting an interest rate of 4.3 percent for its 10-year bonds in 2027. On Tuesday, French 10-year bonds were trading on the secondary market at 4.8 percent.

France's public deficit was 5.1 percent of gross domestic product last year. The government now forecasts it will reach 5.4 percent this year, instead of falling as previously planned. Under European Union rules, public deficits are meant to be no more than 3 percent of GDP.

Prime Minister Sebastien Lecornu vowed earlier this month to cut the deficit next year without resorting to austerity, but the government faces pressure to find spending cuts before presidential elections.