2027
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The Budget Act for 2027 will be presented on Thursday 1 October, with a public deficit target of 5.0 per cent of GDP.
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In 2027, the State’s total financing requirement will stand at €339.7bn, marking a €28.0bn increase compared to the 2026 updated financing requirement.
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The increase in this requirement is mainly due to the redemption of medium- and long-term securities, which increases by €19.4bn, as the issuances from recent years – particularly to adress the health and energy crises – are gradually maturing. Other drivers include the recourse to market financing to take over the end of European financing linked to the Recovery and Resilient Facility (RRF), standing at €6.1bn in 2026.
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The financing requirement in 2027 will be met by the medium- and long term government debt issuance programme, net of buybacks, worth €340.0bn, while the outstanding short-term governement securities (BTFs) will increase by €2.2 bn. Other cash resources amount to -€5.0bn, including, in particular, an expected volume of discounts at issuance of €8.0bn to reflect the impact of higher interest rates on new issuances.
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State debt services is expected to stand at €72.9bn.
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The net year-on-year increase in the nominal value of negotiable State debt with maturities of one year or more will be capped at €160.5bn.
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The detailed medium- and long-term financing programme for 2027 will be released in December 2026.
2026
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For 2026, issuance of medium- and long-term debt, net of buybacks, remains unchanged at €310.0bn. At the end of September, 85% of the State financing programme had been completed, in line with previous years. Since the beginning of the year, demand for State securities has been 3.5 times higher than the amount offered on short-term issuances, and 2.5 times higher than the amount offered on medium- and long-term issuances.
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The State’s financing requirement for 2026 has been revised to €311.7 billion, compared with the €310.0 billion forecast in the 2026 initial Budget Act promulgated in February 2026.
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‘Other cash resources’ are projected at -€10.2bn, compared to -€2.0bn in the 2026 initial Budget Act, mainly as a result of discounts at issuances reflecting the higher interest rate environment. The outstanding short-term securities will increase by €9.6bn in 2026, compared to €2.0bn in the initial 2026 Budget Act.
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Since the beginning of 2026, the weighted average yield of medium- and long-term debt securities issued stands at 3.55%, compared to 3.14% in 2025. The weighted average rate on BTF issues stands 2.38%, compared to 2.12% in 2025.
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State debt service is revised to €62.6bn for 2026, versus €59.3bn in the 2026 initial Budget Act.
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