Almost every country borrows
Borrowing spreads the cost of things that last (roads, schools, hospitals) or cushions a crisis, as in 2009 or 2020.
Question 2
Why does France borrow?
Because every year, public administrations spend more than they take in. In 2025 they spent €1,714 billion and received €1,562 billion: €153 billion was missing, about €420 million a day, and it had to be borrowed.
Public administrations: the State, Social Security and local governments.
Since when?
Not a single balanced budget since 1974
Each bar is one year’s balance: up for a surplus, down for a deficit. Since 1975, France has run a deficit every single year: 51 years in a row.
Deficit or debt?
The bathtub: the deficit flows in, the debt rises
The two are often confused. The deficit is what flows from the tap during one year: what is missing that year. The debt is the water level: everything that has built up since the start.
This year’s deficit–of GDP
Debt–of GDP
For the level to really fall, water would have to drain out: a surplus. But debt is measured as a % of GDP, and the tub can also get bigger: when the economy grows faster than the debt, the level falls even with a small deficit. That happened in the late 1990s, and again in 2021–2023.
So is borrowing bad?
Not necessarily. It depends on what for, and at what price.
What matters: what the money is for
Borrowing to invest can pay off later. Borrowing every year for day-to-day spending means part of it is paid later.
And what it costs
Every euro borrowed carries interest. When rates rise, the bill climbs: that is the next question.