Belgium targets €7 billion in budget cuts to address deep deficit

The Federal Planning Bureau has supplied the Belgian government with a menu of more than 250 options aimed at generating €7 billion in savings. Proposals include raising the standard VAT rates, introducing a double income tax on investment earnings, trimming subsidies, selling state‑owned assets, and reforming pension and health‑care financing. The list also suggests adjustments to wage indexation and tighter controls on public‑sector spending.

Transport minister Jean‑Luc Crucke told Bel RTL that the administration has already made significant reductions and that further cuts could jeopardise the functioning of the state. He emphasised, “La Belgique n’est pas en situation de faillite, mais elle est dans une situation très difficile,” and added, “On est parfois vraiment à l’os.” Crucke warned that the European Commission could react sharply if the deficit is not curbed. The government must now decide which measures to adopt as it confronts a projected 5.2 % deficit in 2025 and public debt exceeding 100 % of GDP.