The 2027 State Budget projects a 7 billion euro surplus for the Social Security pension system (2.1% of GDP), driven by growth in contribution revenues. However, the budget report warns that the system is expected to face structural deficits beginning in the 2040s, primarily due to the rising long-term costs of pensions.
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The government's proposed 2027 State Budget projects a 0.1% surplus (about 270 million euros) and excludes measures like a zero-IVA rate on food or an IVA reduction on fuel. The Finance Minister warned that adding such measures would push the state into a deficit and urged opposition parties not to alter the budget during November's parliamentary discussions.
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.
The Left Bloc (BE) announced it will vote against the proposed 2027 State Budget, criticizing a lack of structural measures and the unfreezing of university tuition fees. The government's proposal, which projects 2.1% economic growth for 2027, is scheduled for a general vote between October 27 and October 28, with the final global vote set for November 24.