EU warns Belgium will remain eurozone’s worst budget performer as deficit stays high

The European Commission expects Belgium’s budget deficit to remain high in 2026 and rise again in 2027, according to new economic forecasts.

Belgium’s deficit is forecast at 5.2% of GDP this year, the same as last year. This is mainly due to higher defence spending and interest payments on debt, partly offset by cuts in public spending, pensions reform, and labour market measures. The Commission also notes that planned national savings measures are not included in its forecast.

In 2027, the deficit is expected to increase slightly to 5.4% as spending rises again. This would keep Belgium as one of the worst performers in the eurozone for public finances (after France with a projected deficit of 5.7%).

Across the euro area, the average deficit is 3.3%, well below Belgium’s level. The Commission says Belgium’s debt will also keep rising, from 107.9% of GDP last year to 110.5% this year and 112.8% in 2027.

The forecasts come from the European Commission, which warns that higher energy prices linked to the Middle East conflict (2023-present) are slowing growth and pushing up inflation across Europe.

Belgium’s economy is expected to grow modestly, by 0.7% this year and 0.9% next year, slightly below the eurozone average.

Inflation is also forecast to stay elevated, at around 3.4% in Belgium this year, before easing in 2027 if energy markets stabilise.

^{PM Bart De Wever © BELGA PHOTO DIRK WAEM}