The government will adopt a new package of measures on Monday to deal with the war in Iran
The Government will seek to protect citizens and the business fabric from the economic impact of the Middle East conflict and present the macroeconomic framework on which the 2027 Budgets will be based.
The Council of Ministers will approve a new package of measures on Monday to address the economic consequences of the war in Iran. The government has brought the meeting forward to Monday, as most anti-crisis measures will no longer be in place on June 30.
Although the content of the decree has not yet been specified, the President of the Spanish Government, Pedro Sánchez, has advanced that it will include actions to protect the business fabric and citizens from the impact of the conflict.
The new Royal Decree-Law will replace part of the measures adopted in March, some of which, such as the reduction of electricity VAT, have already been suspended due to the slowdown in energy prices. Once approved by the Council of Ministers and published in the EBOC, the text must be validated by Congress within thirty days.
Budgets 2027
Furthermore, at this Monday's sitting, the macroeconomic framework on which the 2027 State General Budgets will be based will also be presented. The next step will be to convene a Fiscal and Financial Policy Council to inform the Autonomous Communities of the objectives of budgetary stability and the distribution of the deficit to be assumed by public administrations.
The draft budget is expected to be presented after the summer and the Government will maintain its forecast of 2.2% GDP growth.
In fiscal terms, the government has reduced its 2026 closing deficit forecast from 2.1% in November to 1.6%, while the executive expects the public debt ratio to break the 100% ceiling and stand at 99.3% by the end of the year.
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