France's debt burden grows as interest payments jump €5 billion

France's state debt interest payments rose 18.3% between June 2025 and June 2026, from €29.2 billion to €34.5 billion, adding over €5 billion to spending as the government aims to cut the public deficit. The increase, attributed by Bercy to higher interest rates driven by inflation from the Middle East war and oil prices, contributed to a first-half budget deficit of €106.8 billion, up €6.4 billion year-on-year. The government targets a public deficit of 5% of GDP this year, down from 5.1%, but officials express pessimism due to energy costs, Gulf military activity, and southwest wildfires.