Economy
A consolidation budget to prepare for what may come
The 2027 State Budget signals a shift away from the extraordinary funding of the Recovery and Resilience Plan (PRR), with public investment (excluding PRR) set to grow by 6.8% to 9.687 billion euros. Total state spending is projected to increase by 5.7%, while interest payments on sovereign debt are expected to rise significantly by 23.2% to 8.2 billion euros.
Why it mattersThis budget outlines the government's fiscal strategy, prioritizing debt reduction over increased public spending; for a resident, this means there is no major expansion of public services or new universal subsidies on the horizon for 2027.
