Spain Schedules Key Fiscal Policy Meeting Amid 2026 Budget Delays

Spain's Ministry of Finance has convened the Fiscal and Financial Policy Council (CPFF) for November 17 to discuss the stability path and fiscal targets for 2026 with the autonomous communities. This meeting has been delayed for several months and is a critical step for drafting the 2026 budget, which might not be approved before the end of the year, necessitating an extension of the 2023 budget—potentially making it the longest-serving in Spain's democratic history.

At the meeting, the government plans to present stability objectives that aim to limit the deficit to 2.1% of GDP and public debt to 100.1% of GDP, aligning with its fiscal plan submitted to Brussels. The current stability program approved in April 2023 had set a deficit target of 2.5% for 2026, prior to reforms in the EU’s fiscal rules.

The approval process requires the CPFF to vote on the stability path, which is expected to pass due to the Ministry's voting majority, before going to the Council of Ministers and then Congress. Should Congress reject the stability path, the government would be compelled to resubmit it within a month to ensure compliance with fiscal regulations.

This upcoming CPFF meeting marks a pivotal moment in Spain's fiscal policy, reflecting the government's effort to reconcile budget delays with EU-mandated fiscal discipline, amid challenges that may see an unprecedented budget extension into 2026.