European public debt climbs as borrowing costs surge

Europe's public debt is climbing as borrowing costs surge, with France's debt near 119% of GDP and eurozone debt expected to keep rising.

• France's public debt reached about 3.6 trillion euros, roughly 119% of GDP, by the end of the second quarter of 2026.
• The European Commission forecasts eurozone public debt rising from 88.7% of GDP in 2025 to 90.2% in 2026 and 91.2% in 2027.
• The IMF cut its eurozone growth forecast to 1.1% for 2026, projecting 0.4% growth for France and 2.5% for Spain.
• IMF managing director Kristalina Georgieva said yields in advanced economies reached levels not seen in decades and warned of spillover to emerging markets.
• France's 10-year bond yield rose to 4.94%, pushing its premium over German bunds above 150 basis points, the widest since January 2012.
• Prime Minister Sébastien Lecornu is trying to pass a 2027 budget without a majority, proposing €43 billion in spending cuts that would still leave the deficit at 5% of GDP.
• France's borrowing costs reached their highest levels in nearly 25 years, with 10-year yields rising more than 130 basis points since June.
• Unrest included attacks on public buildings, and protesters called for a general strike on November 5.
• Moody's is set to announce France's credit rating on Friday, according to market analysts.
• European stocks fell Tuesday, with the Stoxx 600 down 0.65 percent and the CAC 40 down 0.69 percent, while the euro rose 0.2 percent to $1.1235.