France's Net External Debt Reaches 37.5% of GDP, Contrasting Eurozone's External Credit

Paris, France – France faces a significant financial challenge with its net external debt standing at 37.5% of its Gross Domestic Product (GDP), as highlighted by Sylvain Catherine in a recent social media post. This figure starkly contrasts with the Eurozone's overall position, which maintains a net external credit of 10% of its GDP. Catherine noted, "France has more debts towards the outside than it has claims," quantifying this at approximately €1100 billion owed to the rest of the world.

The 37.5% net external debt for France, representing the nation's total external liabilities minus its total external assets, was confirmed by EUROSTAT data for December 2024, according to Trading Economics. This substantial negative international investment position indicates a notable reliance on foreign financing for the French economy.

In contrast, the Eurozone's collective net external credit position of 10% of GDP, reported by the European Central Bank (ECB) for Q1 2025, suggests that the bloc's member states collectively hold more assets abroad than foreign entities hold within the Eurozone. This disparity underscores France's unique financial standing within the common currency area, where several other member states exhibit net external credit positions.

Adding to the nation's financial scrutiny, France's government debt has also drawn attention. The national government debt reached €3.35 trillion this year, equivalent to 116% of economic output, positioning it among the heaviest burdens in the Eurozone. This elevated public debt level, combined with a persistent deficit, prompted Fitch Ratings to downgrade France’s sovereign debt rating to A+ from AA– in September 2025.

The downgrade was attributed to a "ballooning debt and deficit" and an increasingly fragmented political landscape, as reported by The New York Times. The European Central Bank's Financial Stability Review (May 2025) further noted that many Euro area countries, including large economies, are expected to run sizeable budget deficits in 2025, highlighting broader fiscal challenges across the region. These mounting financial pressures could impact France's borrowing costs and its capacity to fund public services and social programs.