France to borrow record €310 billion in 2026 as Lecornu survives no-confidence threat

France will borrow a record €310 billion from financial markets next year to finance its growing public deficit and refinance maturing debt, according to figures released by Agence France Trésor (AFT) on Tuesday.

The debt office said the amount represents 10.1 percent of France’s GDP in 2026 — unchanged from this year and still below the peak of 11.2 percent recorded in 2020 during the COVID-19 crisis.

The borrowing plan comes as Prime Minister Sébastien Lecornu faces a tense week in parliament, where two no-confidence motions have been filed against his minority government. Despite the political turmoil, the government appears set to survive after the Socialist Party confirmed it will not back any move to topple Lecornu.

Socialists confirm they will not vote to oust government

Socialist spokeswoman Dieynaba Diop said on Tuesday that her party “will not vote for a no-confidence motion at this stage”, effectively ensuring the government remains in power long enough to present its 2026 budget.

The announcement followed reports in French media citing Socialist lawmakers who said their decision was final, at least for now. Their stance means the hard-left France Unbowed and far-right National Rally parties, which tabled separate no-confidence motions, lack the numbers to bring down the government.

The conservative Les Républicains party also said it would back Lecornu’s government “for the sake of stability”, further reducing the risk of a collapse.

Pension reform suspended to ease tensions

In an effort to calm tensions and win support from the centre-left, Lecornu announced that the controversial pension reform raising the retirement age from 62 to 64 will be suspended until the 2027 presidential election.

He said the pause would allow time for “a new debate” on the future of work and retirement, including a proposed national conference involving trade unions and employers.

“This conference will have time to reach an agreement before the presidential election,” Lecornu told lawmakers. “If it does, the government will turn it into law and parliament will decide.”

The move was welcomed by unions as a “victory for the left” but dismissed by the far-left France Unbowed as “a delaying tactic”.

Budget strain and mixed reactions

Lecornu’s 2026 draft budget foresees cuts to more than 3,000 public sector jobs, a freeze on pensions and social benefits, and an extended surtax on high earners. Critics say the plan places too much of the burden on middle- and low-income households.

Economist Gabriel Zucman accused the government of protecting billionaires, saying “everything has been done to spare Bernard Arnault and other wealthy elites”.

Meanwhile, the French fiscal watchdog, the Haut Conseil des Finances Publiques, warned that the budget’s projections rest on “overly optimistic” growth assumptions and may not deliver the expected savings.

Macron warns of dissolution if Lecornu falls

President Emmanuel Macron has warned that any successful no-confidence vote would automatically trigger the dissolution of the National Assembly and fresh elections. Government spokeswoman Maud Bregeon said such a motion would be treated as “a dissolution vote in disguise”.

For now, the Socialists’ decision has bought Lecornu valuable time. But as France faces record borrowing, deep budget cuts and ongoing political division, his government remains under pressure to prove it can deliver both stability and results.

Copied