Debt Ratio Divergence Intensifies: France Rises to 119%, Germany at 64%

### Title: Diverging Fiscal Conditions Between France and Germany Intensify: French Debt Ratio Hits Post-WWII High, Burden Hard to Ease; Germany Maintains Solid Finances, Moderately Relaxes Debt Brake, Boosts Defense Spending---### Content:France’s public debt has reached 119% of GDP, setting a new record high since the end of World War II, while Germany’s ratio over the same period stands at just 64%. When the euro was first introduced, both France and Germany had debt ratios around 60%, but since 2010 the two countries have exhibited a clear divergence in their trends.Germany’s constitutionally mandated debt brake mechanism requires the government to balance the budget and maintain a basic fiscal surplus. Driven by this rule, Germany’s debt ratio once declined from 81% to 59% in 2019. However, France has not achieved a fiscal surplus since 1974; its fiscal deficit rate for 2025 is about 5.1%. According to relevant estimates, if significant spending cuts are not implemented, France’s debt ratio is expected to rise to around 122% by 2027. Currently, Prime Minister Attal has proposed a savings plan of 54 billion euros, but due to the fragmented nature of parliament, there remains uncertainty as to whether the related bill will ultimately pass.Meanwhile, with its solid fiscal foundation, Germany has chosen to slightly relax its debt brake mechanism to increase investment in the defense sector—an approach to fiscal flexibility that is clearly not currently available to France.