France’s elevated public debt near 119% of GDP and projected deficit around 5% of GDP in 2027 have prompted wider OAT-Bund spreads and a Fitch outlook revision to negative in late October, yet investment-grade ratings from major agencies and euro-area membership continue to anchor market access. Recent budget negotiations, including the National Assembly’s rejection of the initial 2027 package, reflect parliamentary fragmentation ahead of the presidential vote, but the government’s €54 billion consolidation measures and use of procedural tools aim to prevent a sharper deterioration. Traders assign only an 8% chance of default by end-2027 because refinancing needs remain coverable at current yields near 5%, debt-servicing costs, while rising, have not triggered a liquidity squeeze, and historical precedent plus ECB tools limit tail risks of outright default within the resolution window. Late-breaking political gridlock or further rating pressure could still shift odds modestly.