Finance minister warns inaction could derail Belgium’s economic growth as budget talks stall
On Thursday, Belgian Finance minister Vincent Van Peteghem (CD&V) warned that failing to make decisive progress in the federal budget talks would derail economic growth and stall investment. Addressing the Chamber of Representatives, he described the ongoing negotiations as 'complex and far-reaching', emphasising that 'what Europe demands of us will be the bare minimum'.
While prime minister Bart De Wever (N-VA) was attending a European summit, Van Peteghem was questioned by MPs about the stalled discussions. He emphasised that the current budgetary efforts are weighed down by "an inheritance for which we all share responsibility". He pointed out that federal interest charges could account for 40 per cent of the deficit within a few years.
Van Peteghem reaffirmed that the government’s fiscal objective "is clear and not up for debate". He warned that meeting the EU's expenditure target of 10 billion euros by 2030 would take time. “We must do what is necessary, not what is easy,” he said, arguing that making difficult decisions now would prevent a later erosion of purchasing power and prosperity. Without action, Belgium risks becoming “a society where everyone is left to fend for themselves”.
Meanwhile, Development Cooperation minister Maxime Prévot (Les Engagés) assured parliament that his department would not face further cuts. In response to questions from the opposition, he described the earlier 25 per cent reduction set out in the coalition agreement as “already painful enough to implement on the ground”.
© BELGA PHOTO ERIC LALMAND