Overview
- The Chamber of Deputies passed the €22 billion package after the Senate’s earlier approval, clearing it to take effect on 1 January.
- Measures include a cut in the income tax rate to 33% for earnings of €28,000–€50,000 and about €2.9 billion in fresh incentives for businesses.
- The government projects a deficit around 2.8% of GDP in 2026 but says the target could be narrowly missed while remaining under the EU’s 3% ceiling.
- Public debt is forecast to edge up to 137.4% of GDP next year before declining from 2027 under the government’s projections.
- A separate law curbs the Court of Auditors’ powers by capping liability, narrowing negligence standards, and allowing tacit approvals after deadlines; pension changes were limited to a three‑month increase in the retirement age by 2028.