Here's a BBC article. Sounds like France has a large budget deficit, but it would be a bit much to declare it bankrupt.

European Central Bank chief Jean-Claude Trichet has attacked France for being Europe's "number one spender".

Mr Trichet warned that in comparison to its GDP, the country was well on the way to spending much more than its European neighbours during 2007.

The warning came as Prime Minister Francois Fillon warned that France's finances were in a "critical" state.

French finances have caused friction with Europe, with France under pressure to cut its budget deficit.