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Senate Backs Reworked 2026 Budget as Deficit Estimate Climbs to About 5.3%

A cross‑chamber committee convenes Friday to seek a compromise that could avert a 49.3 gamble.

Overview

  • The Senate approved its version of the 2026 state budget by 187–109, sending the text to a 7‑deputy, 7‑senator joint committee for negotiations on Friday.
  • A government tally presented to senators now pegs the 2026 public deficit near 5.3% of GDP, above the sub‑5% goal, with some reports citing 5.4%.
  • The National Assembly is expected to definitively pass the Social Security budget on Tuesday after tight votes, including a €4.5 billion transfer from the state to the Sécu.
  • Senators scrapped the planned surtax on large companies and sharply narrowed the proposed levy on holdings, reducing expected revenues and complicating deficit reduction.
  • If the joint committee fails or its compromise is rejected, options include a special continuity law in late December or using 49.3, which the prime minister resists as Socialists warn of a censure risk.