Belgium budget deadlock: Coalition partners clash over 10 billion euro deficit

Belgium is facing a political deadlock as Prime Minister Bart De Wever attempts to secure 10 billion euros to stabilize the national budget by 2029. The negotiations are marked by intense friction among coalition partners regarding how to achieve these savings and meet European spending norms.

A primary point of contention is a proposed Value-Added Tax (VAT) reform. One proposal suggests raising the highest VAT rate from 21 to 22 percent while consolidating lower rates at 9 percent. However, Georges-Louis Bouchez, president of the MR party, has resisted this, arguing it would reduce purchasing power by over 2 billion euros and exacerbate inflation.

Tensions have escalated into personal political attacks. Maxime Prévot, Vice-Premier and member of Les Engagés, publicly criticized the MR leadership. Meanwhile, other coalition partners, including Vooruit and Les Engagés, are pushing for increased contributions from the wealthiest citizens and further savings in healthcare, proposals that have also met resistance.