Budget 2027: MPs revise VAT on electricity, pay-TV, and essential goods

On November 2, deputies revised a segment of the state budget project, often opposing the government's stance. Economic criticism arose following disappointing growth statistics, with GDP declining by 0.1% in Q3. The parliament removed a proposed VAT increase on pay TV, which sparked backlash from Canal+, warning of subscription price hikes. The government aims to raise €400 million through this measure amid worsening public deficit. While the final budget version remains uncertain, the government may resort to constitutional measures to override parliamentary votes. Additionally, deputies approved a reduced VAT on electricity and essential goods, alongside tax exemptions for overseas territories. A tax on highway concession profits was also supported, alongside measures to assist cognac producers affected by tariffs.