Belgium faces €7.9 bn budget gap by 2029, seeks reforms

A provisional report by Belgium’s Monitoring Committee warns that the federal government must raise an additional €7.9 billion before 2029 to keep the budget on track. The shortfall adds to already‑high deficits – about 5.2% of GDP – and a debt ratio projected to reach 117% of GDP, breaching EU fiscal thresholds.

Prime Minister Bart De Wever’s coalition is debating how to close the gap. Options under discussion include raising the standard VAT rate from 21% to 22% and consolidating reduced rates, trimming public‑sector costs, and closing tax loopholes. Defence spending to meet NATO’s 2% target and asylum‑related outlays are largely protected from cuts, while opposition parties warn the measures are insufficient and liken the situation to a “financial Titanic.”