Brussels – On Tuesday, the European Commission revealed its assessment of the medium-term plans and draft budgets submitted by EU member states. Belgium has not yet provided these documents, as it is currently in the process of forming a government, leading to a temporary delay in evaluating its financial figures. The provisional deadline for submission has been set for the end of December. In the meantime, the Commission has outlined a temporary budgetary framework.
Belgium has been under an excessive deficit procedure since last summer, often referred to as the ‘penalty box.’ In light of this, the Commission has suggested a plan for fiscal consolidation for the country. It emphasizes that addressing a significant budget deficit will require substantial budgetary measures to reverse the current trend, especially given the lack of a medium-term plan, which necessitates assuming that existing policies will remain unchanged.
The Commission aims to cap the annual growth of Belgium’s net expenditures to 2.4 percent for 2025, 1.9 percent for 2026, and 2.0 percent for 2027, with the goal of reducing the budget deficit to below 3 percent of GDP. These targets are more stringent than those laid out in the reference path proposed in June.
As of now, Belgium has yet to finalize its budget for 2025. The Commission has indicated that it has received an extension until December 31 to submit both the budget and the multiannual plan. Furthermore, by April 30, Belgium must show that it is implementing policy measures aimed at consolidating its budget.
When questioned about the consequences of missing the December deadline, officials at the Berlaymont building refrained from speculation.
26/11/2024
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