Belgium budget delay as coalition disputes fiscal plan

Belgian Prime Minister Bart De Wever has announced that the 2027 state budget will not be presented to Parliament as scheduled due to disagreements within his five-party center-right coalition. The delay means the annual State of the Nation speech, intended to outline the fiscal roadmap, will not take place on October 13.

De Wever is seeking a €10 billion fiscal effort by 2029 to address a national deficit that exceeds 5% of GDP. The proposed plan focuses on reducing public spending, particularly in healthcare, but also includes a VAT increase. The Mouvement Réformateur (MR), a French-speaking liberal party in the coalition, strongly opposes tax hikes, arguing they would exacerbate inflation.

The political deadlock occurs amid significant labor unrest. Following a demonstration of 30,000 people in Brussels, public sector workers were called to strike by the CGSP union. De Wever has not yet set a new date for a compromise and has rejected the use of an emergency budget based on previous fiscal exercises.