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# [LA RÉUNION] Regional Budget 2026: €1.32 Billion, Submarine Cable and First Green Balance Sheet
- URL: https://businessoi.media/en/la-reunion-budget-regional-2026-1-32-milliard-deuros-cable-sous-marin-et-premier-bilan-vert-en/
- Published: 2026-08-13T02:44:13.000Z
- Updated: 2026-08-13T02:44:13.000Z
- Description: A €1.32 billion budget on the rise, a €100M submarine cable co-funded by the EU, and the first environmental assessment of regional spending: La Réunion bets on three strategic fronts for 2026.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, Économie, Revue matinale, #en

La Réunion's Regional Council has adopted its 2026 budget amid significant growth despite national financial pressures. With **€1.32 billion in payment credits** and €1.94 billion in total budgetary movements, this budget marks a turning point: 53% is dedicated to investment, versus 47% for operating expenses.

## Massive Infrastructure Investment

Sustainable development and ecological transition absorbs **€321 million**, up 27.8% — the fastest-growing allocation. Human development and solidarity reaches €278 million (+7.8%), while economic development receives €100 million (+2.2%). Overall, investment spending surges 22.7%, driven by major ongoing projects: secondary schools, roads, and the New Coastal Road.

## A Fourth Submarine Cable Confirmed at €100 Million

The budget's headline announcement is the confirmation of a **new €100 million submarine cable**, two-thirds funded by the European Union and one-third by local stakeholders through La Réunion THD. The island currently relies on three cables (SAFE, METISS and LION), but their geographic concentration creates a strategic vulnerability against geopolitical threats and cybersecurity risks.

«This fourth cable will strengthen our connectivity and ensure service continuity for all Réunionnais and businesses,» said Normane Omarjee, president of La Réunion THD. The application has been submitted to the European Commission, with a response expected in the coming weeks.

## The Territory's First Green Budget

Another structural innovation: the Region is publishing its **first environmental assessment of spending**, integrating climate and biodiversity components. This unprecedented approach at this territorial level aims to align the budget with La Réunion's ecological transition commitments.

On the fiscal side, the regional council raised the vehicle registration tax to its legal ceiling of €60 per horsepower, generating €500,000 in additional annual revenue. A symbolic measure in a context where the public sector wage bill rose from €153 million to €180 million since 2021, with 180 additional staff recruited.

## Why It Matters

This budget crystallises La Réunion's priorities for the coming years: digital sovereignty through the cable, economic attractiveness through investment, and environmental responsibility through the first green budget. The submarine cable is particularly strategic as the Indian Ocean becomes an arena of geopolitical rivalries where control of digital infrastructure is as significant a sovereignty issue as natural resources. For Réunion businesses, better connectivity means lower costs, more reliable cloud services, and improved competitiveness across the region.

*Source: Zinfos974, 13 August 2026\. AI-assisted — reviewed and verified.*