PM De Wever sounds alarm on Belgium’s public finances amid budget negotiations
Prime minister Bart De Wever (N-VA) has painted a bleak picture of Belgium’s welfare state, warning that it “will undoubtedly collapse” if the country continues on its current budgetary path. His remarks come amid tense federal budget talks in Brussels.
Speaking on Tuesday at the opening lecture of political science at Ghent University, the premier defended his government’s reform agenda and urged structural change to prevent what he called “the inevitable breakdown of our prosperity model.” His one-and-a-half-hour address combined economic analysis with a clear political message: Belgium’s public finances are at breaking point.
The premier said the government has already taken “a number of important reforms”, including adjustments to pensions and the limitation of unemployment benefits in time, to make ageing costs “more manageable.” He announced further measures targeting long-term sickness, a stricter migration policy, and greater labour market flexibility to raise productivity.
Despite these steps, De Wever acknowledged that the reforms will not be enough to solve Belgium’s fiscal problems. “We will move in the right direction, but fundamentally we will still not get there”, he said. He also added that some challenges “can only be resolved at a higher level”, referring to the European context.
The comments come as the federal coalition (N-VA, MR, cd&v, Vooruit and Les Engagés) struggles to reach agreement on the 2026 budget and multi-year financial framework. The talks centre on finding between 8 and 20 billion euros in savings to meet European deficit targets.
De Wever said that 10 billion euros in cuts would be “the minimum required” by the European Commission, though “more would be better, if at all possible.”
While the government faces a 14 October target to finalise the budget, the prime minister played down the date’s importance. “I do not want a rushed agreement; I want a good one. That is the most important task of this legislature”, he said.
“I do not want a rushed agreement; I want a good one. That is the most important task of this legislature”
So far, negotiations have remained cautious, with only bilateral talks held in recent days. Technical working groups are still calculating the effects of potential measures, including stricter controls on long-term sickness benefits, a wealth contribution on large fortunes, and a crackdown on social and fiscal fraud.
Belgium’s deficit currently stands at about 5 per cent of GDP.
De Wever is expected to outline the government’s budget strategy during his State of the Union address next week.
PM Bart De Wever at the opening lecture of political science at Ghent University © BELGA PHOTO DIRK WAEM