The Council of Ministers approved the 2027 State Budget and Medium-Term Fiscal Framework, focusing on growth, social cohesion, defense, and fiscal sustainability, with a budget of €11.16 billion.
At today’s meeting, the Council of Ministers approved the 2027 State Budget Bill and the Medium-Term Fiscal Framework (MTFF) 2027–2029.
The 2027 Budget amounts to €11,160.5 million, excluding debt servicing costs (interest and principal repayments).
The 2027 Budget is balanced and growth-oriented, with a focus on social cohesion and social policy. Both the Budget and the MTFF emphasize increased defense spending.
The objectives include maintaining a fiscal surplus, containing public sector employment, reducing public debt, advancing green and digital initiatives, supporting sustainable growth, and ensuring financial system resilience.
Development expenditure is projected at €1,165.274 million, with capital expenditure increasing by 2.1% compared to 2026.
The government aims to contain public sector wages, with a reduction of 51 posts in 2027 compared to 2026, continuing efforts for the third consecutive year.
The economic outlook remains positive, with a projected GDP growth of around 2.9%, and unemployment expected to decline to 4.5%, indicating full employment levels.
The fiscal balance for 2027 is forecasted to be a surplus of 2.8% of GDP, up from 2.3% in 2026. The primary balance is expected to reach 4.0% of GDP, from 3.6% in 2026.
Stronger economic activity will support government financing and reduce public debt to 46.6% of GDP in 2027, down from 49.9% in 2026.
These measures reflect the government’s commitment to steady growth, fiscal responsibility, and social progress.
