France's Public Debt Hits Record High Ahead of Presidential Election

France's public debt has reached an all-time high during President Emmanuel Macron's two-term presidency, raising concerns among investors and emerging as a key issue in next year's presidential election.

The country's national debt stands at 119% of its gross domestic product (GDP), with the government expecting it to grow to nearly 122% by the end of next year. This is despite proposed spending cuts worth €54 billion ($61 billion).

According to Budget Minister David Amiel, these cuts are essential for the country's strained public finances, but they will likely face opposition in parliament.

Radical-left candidate Jean-Luc Melenchon has proposed canceling French government bonds held by the European Central Bank (ECB) to unlock funds for public spending. However, ECB President Christine Lagarde has dismissed this idea as a 'pure violation' of the EU treaty, which bans central bank financing of national governments.