2027 budget reaches parliament with PS backing assured

On Thursday afternoon, the government submitted the draft 2027 State Budget law to parliament, complying with the deadline. The document, submitted by Finance Minister Joaquim Miranda Sarmento, received the Socialist Party (PS) assurance of support. The PS secretary-general, José Luís Carneiro, announced earlier that the party plans to abstain in the vote, subject to four conditions: constitutional revision with Socialists and PSD in the center, pension protection, investment project funding beyond the Recovery and Resilience Plan, and support for municipalities and regions affected by storms.

The Communist Party (PCP), Left Bloc, and Chega have declared their intent to vote against the government's proposal. The President of the Republic, António José Seguro, expressed hope for a fruitful debate to improve people's lives during a difficult time. Finance Minister Miranda Sarmento declined to estimate the room for negotiations, stating that the projected surplus for 2027 will be between 0.1% and 0.2% of GDP.

The government projects that economic measures already enacted will have a 4.8 billion-euro impact in 2027, not including any new policies in the next budget. Macroeconomic forecasts for next year include 2% economic growth and a potential budget surplus of up to 0.2%. The budget includes measures for pension reform, wage adjustments, and tax cuts, with income tax brackets to be updated, the corporation tax rate lowered, and housing measures implemented.