European Commission gives Belgium more time to submit draft budget
The European Commission announced on Tuesday its assessment of the EU member states' medium-term plans and draft budgets. As Belgium has not yet submitted either document to the Commission due to the protracted formation of its government, the assessment of its budget has been postponed.
The Commission has given Belgium until 31 December to submit its draft budget for the coming years. It must demonstrate by 30 April that policy measures are being taken to clean up the budget. The Commission said it "does not speculate" on what might happen if the country misses one of these deadlines.
Belgium has been in an excessive deficit procedure since last summer because of its large budget deficit. The Commission wants countries in the procedure to implement budget reforms over a four-year period. This could be extended to seven years if the plan is backed up by realistic reforms and investments.
Provisional 12ths
But with negotiations on the next federal government still ongoing it is unclear if Belgium will be able to submit a draft budget before 2025. That is why the outgoing De Croo government drew up a provisional budget on Monday, in consultation with formateur Bart De Wever, who is tasked with leading negotiations to create a new government coalition.
This budget covers the first three months of 2025 and is based on the system of provisional 12ths. This sets monthly spending at 1/12th of the previous year's budget, adjusted for inflation, to ensure that civil servants' salaries or pensions can still be paid.
© BELGA PHOTO JAMES ARTHUR GEKIERE
Related news
