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Government Extends Anti-Crisis Measures and Begins 2027 Budget Process
Officials approved an extension of economic support measures and a new housing plan at a cabinet meeting on Monday. The government also updated macroeconomic forecasts as the first step toward drafting the 2027 state budget.
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An extraordinary Council of Ministers approved a new package of measures on Monday to address the economic effects of the international crisis and formally launched work on the General State Budget for 2027. The decree replaces an earlier package set to expire on 30 June.
It keeps in place fuel subsidies of 20 cents per litre for hauliers, farmers and livestock breeders, along with incentives for electrification and renewable energy. The Minister for Economy, Trade and Enterprise stated that the measures aim to protect households, workers and sectors exposed to energy-market volatility linked to the situation in the Middle East.
and 2027 Budget The cabinet also reinforced its housing strategy.
The Minister for Inclusion, Social Security and Migration said the government plans to approve additional housing measures in July, including rules on seasonal rentals, tax incentives for landlords who lower rents, and an increase in VAT on tourist accommodation to 21 percent.
These steps build on the 2026–2030 State Housing Plan approved in April, which carries a total investment of 7 billion euros. The plan seeks to expand public housing stock, increase renovation work and protect subsidised housing built with public funds.
The update of the macroeconomic framework marks the first formal step toward preparing the 2027 General State Budget. Officials said the new projections will guide spending ceilings and fiscal targets before the budget bill is sent to parliament, likely after the summer.
