The 52 Most Indebted Cities in France: Understanding the Ranking, Evolution, and Local Challenges

Introduction

The management of local public debt has become a major concern in France. The indebtedness of municipalities raises questions about governance, investment strategy, and the future for residents. Which territories are most affected by this phenomenon? What amounts do they reach? This detailed report aims to present the ranking of the 52 most indebted cities in France, analyze their financial situation, the causes of their indebtedness, the impact on public policies, and the prospects for reducing debt.

Why Focus on Municipal Debt?

A city's debt directly conditions its ability to carry out projects, invest in new infrastructure, and provide quality services to its residents. For many municipalities, debt has allowed significant social or economic progress, but it can also burden future generations and reduce budgetary flexibility.

  • A key indicator of local financial health.
  • A major issue for municipalities facing cuts in state grants, increasing costs, and the need to maintain the attractiveness of their territory.
  • A topic that directly influences local taxation, the quality of public facilities, and the ability to attract businesses and families.

Ranking of the 52 Most Indebted Cities in France in 2024

The ranking below presents the 52 French cities with more than 10,000 inhabitants and displaying the highest level of debt per inhabitant. It distinguishes cities with a significant actual population, excluding extreme cases of mountain resorts with very low legal populations where the debt-to-population ratio is distorted.

Top 10 Most Indebted Cities (2024) – Debt per Inhabitant

  • Vaujany – 121,380 €
  • Les Angles – 46,762 €
  • Asco – 43,357 €
  • Ris – 34,590 €
  • Turquestein-Blancrupt – 34,208 €
  • Auris – 31,215 €
  • Saint-Martin-lès-Seyne – 29,481 €
  • Risoul – 27,136 €
  • Les Orres – 24,430 €
  • Saint-Colomban-des-Villards – 23,783 €

The complete ranking of the 52 cities continues the list with cities such as Montgenèvre (19,313 €), Les Gets (18,903 €), Les Deux Alpes (17,912 €), down to cities recording a debt of approximately 9,000 € per inhabitant.

Larger Cities and Medium-sized Cities: Key Figures

Beyond the general ranking, it is essential to distinguish larger cities – whose budgetary challenges have a direct impact on millions of French people – from medium-sized cities and small municipalities:

  • Paris : 9.8 billion euros of total debt and 4,563 € of debt per inhabitant at the end of 2023.
  • Levallois-Perret : 4,237 € of debt per inhabitant, long cited as one of the most indebted cities in France.
  • Bagnolet : medium-sized city with the highest debt, 3,798 € of debt per inhabitant and a total debt exceeding 146 million euros.
  • The 32 most indebted large cities present a debt above 1,615 € per inhabitant in 2023.

Full Ranking: The Top 52 Cities in 2024 (by debt per inhabitant)

Here are the top 52 French municipalities according to the 2024 ranking (debt per inhabitant as of December 31, 2024):

  • 1. Vaujany: €121,380
  • 2. Les Angles: €46,762
  • 3. Asco: €43,357
  • 4. Ris: €34,590
  • 5. Turquestein-Blancrupt: €34,208
  • 6. Auris: €31,215
  • 7. Saint-Martin-lès-Seyne: €29,481
  • 8. Risoul: €27,136
  • 9. Les Orres: €24,430
  • 10. Saint-Colomban-des-Villards: €23,783
  • 11. Lichères-sur-Yonne: €23,771
  • 12. Montgenèvre: €19,313
  • 13. Les Gets: €18,903
  • 14. Ardengost: €17,978
  • 15. Les Deux Alpes: €17,912
  • 16. Saint-Christophe-en-Oisans: €17,792
  • 17. Piedipartino: €17,059
  • 18. Eyne: €16,178
  • 19. Loudenvielle: €15,690
  • 20. Tramezaïgues: €14,351
  • 21. Orcières: €14,261
  • 22. Chamrousse: €13,970
  • 23. Le Vernet: €13,898
  • 24. Viey: €13,863
  • 25. Saint-Lary-Soulan: €13,787
  • 26. Saint-François-Longchamp: €13,549
  • 27. Prades: €13,314
  • 28. Crest-Voland: €12,923
  • 29. Grust: €12,909
  • 30. Puy-Saint-Eusèbe: €12,838
  • 31. Tignes: €12,466
  • 32. Saint-Tropez: €12,071
  • 33. Voigny: €11,618
  • 34. Avioth: €11,586
  • 35. Dévoluy: €11,352
  • 36. Véraza: €10,748
  • 37. Carpineto: €10,676
  • 38. Montsapey: €10,430
  • 39. Les Belleville: €10,389
  • 40. Huilliécourt: €10,321
  • 41. Cohennoz: €10,169
  • 42. Villarembert: €10,156
  • 43. Cristinacce: €10,133
  • 44. Saint-Étienne-Cantalès: €10,009
  • 45. Clermont-sur-Lauquet: €9,800
  • 46. Valloire: €9,733
  • 47. Gavarnie-Gèdre: €9,626
  • 48. Porté-Puymorens: €9,397
  • 49. Villaroger: €9,182
  • 50. Les Tonils: €9,150
  • 51. Mont-Dauphin: €9,044
  • 52. Les Ecrennes: €8,987

Geographic Distribution of the Most Indebted Cities

The majority of municipalities with the highest debt-to-population ratios are mountain or tourist resorts where the official population is low but the need for infrastructure is very high. Debt is then "attributed" to a smaller permanent population, which mechanically increases the ratio. Among the large metropolitan areas and cities, Île-de-France, Auvergne-Rhône-Alpes, and PACA regions concentrate several notable cases with significant populations and economies.

  • Mountain resorts: Vaujany, Les Angles, Les Orres, Risoul...
  • Paris region: Paris, Levallois-Perret, Bagnolet, Argenteuil...
  • Regional metropolises: Lyon, Strasbourg, Marseille... heavily indebted in total volume even if the ratio per inhabitant is less exceptional than that of small resorts.

What Are the Main Causes of Municipal Debt?

Understanding municipal debt requires distinguishing several factors:

  • Major capital investments : Programs aimed at modernizing transportation infrastructure, building sports/recreational facilities, improving roads or social housing supply are responsible for increases in debt. These projects are often undertaken to enhance long-term attractiveness.
  • Low tax base : Some municipalities, particularly resorts, benefit from few regular tax revenues per capita, making structural borrowing necessary for their operations.
  • Prior management and strategies : Poor revenue forecasts, sometimes risky financial strategies (e.g., toxic loans in the 2000s), changes in the redistribution of state grants.
  • Demographic factors : Aging population, rural exodus, or rapid growth not accompanied by adequate budgetary anticipation.
  • Economic crisis, inflation, expenditure rigidity : Direct impact on the ability of municipalities to repay their debt or continue investing.

What Are the Consequences of Municipal Debt?

The over-indebtedness of municipalities does not have the same consequences for all territories, but it leads to several recurring impacts:

  • Increase in local taxes : Often, an increase in debt obliges municipalities to compensate through higher local taxation.
  • Reduction in future investments : A heavily indebted municipality must reduce its future projects to provide budgetary flexibility.
  • Decrease in public services : To avoid increasing taxes, some cities reduce the quality or scope of their municipal services.
  • Deterioration of territorial image : Regular ranking among the most indebted municipalities harms attractiveness, hinders the establishment of new businesses, and may hinder demographic growth.
  • Deterioration of the capacity to reduce debt : This is the indicator of the number of years required to fully repay the debt from annual gross savings. Some municipalities exceed critical alert thresholds.

Focus: Recent Evolution and Trends 2022-2024

Between 2022 and 2024, the overall debt of French local authorities continued to grow in a context of inflation and rising costs. Many French municipalities have shown efforts to reduce their debt by curbing investments or limiting recourse to credit. However, the general trend remains towards worsening conditions for many large cities, especially in the Paris region and in areas with high tourism traffic. For example, Paris has seen its debt rise by more than 4 billion euros in a decade, driven by extensive investments and preparations for major events. Other cities struggle to reduce their debt, particularly those with low self-financing capacity.

  • The total debt of major French cities remains very high.
  • Many medium-sized municipalities show a debt below the national average or, conversely, reach record levels (e.g., Bagnolet).

Debt Repayment Capacity Analysis in 2024

The debt repayment capacity measures how many years it would take a municipality to repay its entire debt using its annual savings capacity. A critical threshold is often set at 15 years: above this level, the financial solidity of the municipality is considered degraded.

  • Several municipalities display a capacity exceeding 30 years, or even zero due to very low or negative gross savings.
  • Over-indebted mountain resorts, but possessing significant real estate and tourism assets, may still present a lower risk than indicated by the debt per inhabitant ratio alone.
  • In contrast, some suburban municipalities, overpopulated and structurally deficit, suffer from structural indebtedness that threatens their ability to intervene in the medium term.

Investing in an Indebted City: What Precautions?

The indebtedness of a municipality must be interpreted within its context: high debt can correspond to substantial investments with high social or economic returns (transport, schools, housing, tourist infrastructure), but also to weakened management carrying an increased risk of local tax hikes.

  • Evaluate the nature of the investments: A stadium, a museum, or a tourist infrastructure can enhance the attractiveness of a municipality in the long run, although their amortization occurs over long periods.
  • Analyze the fiscal capacity: The more inhabitants a municipality has, the more it can support significant debt, especially if its tax base increases.
  • Question the local demographic situation: The prospect of population growth or decline significantly impacts the ability to clear the debt subsequently.

Rental Real Estate in Indebted Cities

Real estate investment remains a relevant strategy in some indebted municipalities, particularly in major metropolitan areas or tourist resorts with persistent attractiveness. An extremely indebted municipality, but with strong rental demand and economic growth prospects, will offer opportunities for returns, provided one anticipates a possible increase in taxation or a decrease in service quality in the short term.

  • Choose large urban centers (Paris, Lyon, Strasbourg) benefiting from strong migratory and economic flows.
  • Prefer neighborhoods undergoing transformation or dynamic peripheries.
  • Research upfront on the budgetary decisions of the city council and the multi-year investment program.

Innovation and Resilience in the Face of Debt

Some heavily indebted municipalities, like Paris or major Alpine resorts, choose to rely on innovation in mobility, renewable energy, or the creation of public spaces to enhance overall attractiveness while maintaining strict control over their debt.

  • Development of projects supported by European, national, or regional grants to limit reliance on borrowing.
  • Seeking new public-private partnerships to renovate sports facilities, energy networks, and public transportation.
  • Establishment of participatory platforms: citizen consultations on the allocation of funds and reporting on the progress of debt reduction plans.

Debt Reduction Strategies and Good Practices for Public Debt

To break out of a spiral of over-indebtedness, several levers are used by municipal teams:

  • Renegotiation of loan terms: extension of maturities, reduction of interest rates, exit from toxic loans...
  • Sales of non-strategic assets: municipal real estate, various investments.
  • Temporary increase or controlled capping of local taxation to boost gross savings.
  • Reduction of operating expenses and personnel costs.
  • Increased recourse to subsidies and cross-financing to limit reliance on credit.

Early warning mechanisms (public accounts, reports from the Court of Auditors, local analyses) help prevent runaway debt.

Frequently Asked Questions About Municipal Debt

  • Is a municipality's debt always negative? No. A well-managed debt allows for investment and development. It is the level, rate of growth, and capacity to amortize that pose problems.
  • Can I invest in a highly indebted city? Yes, sometimes even at attractive prices, but it is essential to analyze the city’s long-term strategy and the trend of its debt.
  • Does indebtedness always lead to an increase in local taxes? Not always, but it often results in higher taxes if maneuver margins are exhausted.

Conclusion

The 52 most indebted cities in France reflect the diversity of local economic challenges: tourist resorts requiring heavy renovations, rapidly transforming large metropolises, medium-sized cities struggling with budgetary balances. The raw ranking by debt per capita must always be nuanced in light of the local economy, demographics, historical management, and investment policy.

Evaluating the financial health of a municipality does not rely solely on the amount of debt shown: it is necessary to place this figure within a future-oriented perspective, of projects, management, and territorial dynamism. Choosing to live, do business, or invest in these territories is also believing in the resilience and recovery capacity of these areas.

In any case, rigorous monitoring of the evolution of the budget, local taxation, and the ability to reduce debt remains essential to secure each decision – whether one is a resident, elected official, entrepreneur, or investor.