Belgium reaches agreement on medium-term budget plan

Belgium’s federal government has approved a medium-term budget plan. It will thus meet the European Commission’s mid-March deadline. 

The agreement, announced by Budget minister Vincent Van Peteghem, outlines reforms aimed at reducing public debt and keeping the budget deficit below 3 per cent of GDP.

Belgium was initially required to submit its multi-year budget plan in September but received an extension due to prolonged government negotiations. The newly approved plan aligns with the conditions set by the EU for a seven-year adjustment period.

“By implementing impactful reforms in taxation, pensions and the labour market, we are securing Belgium’s financial stability,” Van Peteghem said. 

Growing deficit

Belgium has been in an excessive deficit procedure since last summer because of its large budget deficit,which is higher than the EU threshold of 3 per cent of GDP. With the procedure, the Commission wants Belgium to eliminate the deficit over a multiple-year period. 

A four-year trajectory was established in November, but some flexibility is possible if Belgium presents a credible reform and investment plan that improves public finances over seven years. 

The European Commission will now review the plan over the next six weeks.

The federal government aims to submit the full 2025 budget to parliament in April, with temporary spending measures in place until the end of June.

^{Finance minister Vincent Van Peteghem © BELGA PHOTO NICOLAS MAETERLINCK}