Only Belgium’s German-speaking community balances its budget for 2025–2026
While most Belgian governments are struggling with significant deficits, the German-speaking Community has presented balanced budgets for both 2025 and 2026.
On Monday evening, minister president Oliver Paasch presented his 2026 budget during a plenary session of parliament in Eupen. Despite announcing cuts of 23 million euros in September, Paasch - who leads a coalition of ProDG, CSP (Christian Democrats) and PFF (Liberals) - confirmed that Belgium's smallest federated entity remains financially stable.
High quality of life
"For 2025 and 2026, we are presenting a balanced ordinary budget, and we are even achieving a small surplus," Paasch told parliament. "We are implementing these savings so that we can continue to invest in areas such as education and healthcare. Our goal is to preserve the high quality of life of our citizens by investing in better life prospects.”
He also addressed the community's 1.3 billion euro debt, emphasising that repayment capacity remains secure and that the government enforces strict debt ratio limits. Despite the austerity measures, no cuts will be made to elderly care. "In fact, the budget for that sector has almost doubled in the last five years," said Paasch. "We have also tripled our efforts in childcare, increasing the budget from 4.1 million euros in 2020 to 12.3 million euros next year."" The budget debates will take place from 8 to 11 December.
Elsewhere in Belgium, public finances are in a much weaker position. The Brussels Region is planning expenditure of nearly 8 billion euros for 2025, with a deficit of 1.55 billion euros, which is 228 million euros worse than last year.
The federal government deficit continues to rise, reaching 26.5 billion euros this year - equivalent to 4.2 percent of GDP - and it is expected to increase to 39 billion euros (5.5 percent of GDP) by the end of the legislative period.
In Flanders, projections by the Social Economic Council of Flanders (SERV) show a deficit of 735 million euros in 2027, growing to 1.65 billion euros by 2029. Consolidated debt could exceed 100 per cent of annual revenues, with over 1.2 billion euros in interest payments due next year.
In Wallonia, the regional government reached a budget deal for 2026 after three weeks of negotiations, identifying 270 million euros in structural savings. Nevertheless, the deficit remains at 2.015 billion euros, and the region will not return to balance before the end of the legislature.
German Community minister president Oliver Paasch and prime minister Bart De Wever sign the golden book after a visit to the German-speaking Community, in Eupen. © BELGA PHOTO BRUNO FAHY