Belgian government may need to find €7 billion in savings by 2029
Belgium’s federal government may need to find around 7 billion euros in extra savings or revenue by 2029, according to budget minister Vincent Van Peteghem.
Speaking on Sunday on public broadcaster VRT, the Christian Democrat minister said earlier estimates of 4.9 billion euros are likely too low because they were calculated before the recent US attack on Iran.
Van Peteghem warned that the conflict could push up inflation and slow economic growth, increasing pressure on Belgium’s public finances.
The federal government, led by prime minister Bart De Wever, is already under pressure to reduce Belgium’s budget deficit and meet European Union spending rules.
The minister said there would not be a single solution. Instead, the government is expected to combine several measures, including cuts or reforms in healthcare spending, company subsidies, social benefits and fossil fuel subsidies.
He also suggested Belgium could raise more money by closing tax loopholes. However, he rejected calls from the socialist party Conner Rousseau and Vooruit for a “millionaires’ tax”, arguing such measures often face legal challenges in Belgium’s Constitutional Court.
Belgium must submit its budget plans to the European Union by 15 October, although Van Peteghem said he hopes to reach an agreement before Belgium’s national holiday on 21 July.
He warned that the measures would affect most people in some way, but said the government should ensure the burden is shared fairly.
PM Bart De Wever and budget minister Vincent Van Peteghem © BELGA PHOTO EMILE WINDAL