The Government has opted to submit to the Council of Ministers on June 29 the new macroeconomic framework that will serve as the basis for the General State Budgets of 2027, along with the next package of actions to face the economic repercussions of the war in the Middle East.
Although the first vice president and Minister of Economy, Carlos Cuerpo, had announced the Government’s intention to bring the update of economic forecasts to the Council of Ministers next Tuesday, June 23, sources from his Department have confirmed to Europa Press the decision to postpone its presentation until June 29, coinciding with the approval of the new royal decree-law of measures to mitigate the impact of the war.
The President of the Government, Pedro Sánchez, has reaffirmed on several occasions the intention to present the Budgets for next year and the ministerial order from the Ministry of Finance, which marks the starting gun for the processing of this project, has already been published.
The next step will be the presentation of the macroeconomic framework, which will be conditioned by geopolitical uncertainty and the impact, especially on price increases, of the war in the Middle East.
Therefore, the Executive has decided that the revision of projections will take place at the same time as the approval of the royal decree-law of measures against the consequences of the war. The Government will bring both procedures to an ordinary Council of Ministers on Monday, June 29, instead of Tuesday, which is when these meetings are usually held, as the current anti-crisis measures largely expire on June 30.
Once the framework has been presented and the measures to be deployed after June 30 have been clarified, the next step in the budget process is the convening of the Council of Fiscal and Financial Policy (CPFF) to inform the autonomous communities of the budgetary stability objectives and the deficit distribution that public administrations must assume.
The Government must approve in the Council of Ministers both the non-financial spending limit – spending ceiling – and the budgetary stability objectives, prior to the CPFF’s report, in order to then send everything to the Courts.
Thus, that deficit path must be voted on in the Congress and the Senate, although the cycle has never been completed in this legislature. And after the summer, the presentation of the General State Budgets Bill for 2027 is expected.
Some of the Executive’s parliamentary partners, such as the PNV, have already instructed the Government to present the public accounts project and, if it is not capable of approving it, to call general elections.
“We are going to present the Budgets,” stated the President of the Government, Pedro Sánchez, this very week, who assured that he will do everything possible to achieve the necessary support during the parliamentary negotiation.
In any case, the head of the Executive has left open the possibility of calling early general elections if he does not manage to approve the General State Budgets for 2027. “If decisions have to be made, then we will make them when these hypotheses occur,” he indicated.