Overview

• Economy Minister Eric Lombard announced that preparations for the 2026 budget will begin immediately to allow more time for adjustments than the 2025 budget process allowed.
• Key priorities include reducing the 'flat tax' on capital gains and dividends for high earners from 37.2% to 30% and addressing the disproportionate impact of increased charges on industries.
• The controversial surtax on large corporations, introduced in the 2025 budget, will not be extended into 2026, though corporate tax levels will remain unchanged.
• The government aims to reduce the public deficit to 5.4% of GDP in 2025 and further to 4.6% in 2026, with spending cuts targeting healthcare, local government, and non-essential state programs.
• New monthly oversight mechanisms will be introduced to strictly monitor public spending and prevent budget overruns like those seen in 2024.