Belgium has been given another extension to submit its draft budget plan for 2025. The new deadline has been set for the end of April, which the European Commission stressed Belgium must meet.
Belgium should have submitted its budget plan to the European Union (EU) some time ago but has twice asked for a postponement. In September, the outgoing government asked for the deadline to be postponed until the end of 2024, which the Commission agreed to at the end of November. The country's new permanent representative to the EU, Peter Moors, then sent another letter on 26 December seeking a further extension.
The country has now been given a reprieve from submitting its budget plan to Europe. The Commission will send a letter this week approving it, De Tijd reported. The new, strict deadline has been set for the end of April, by which point the country must submit the plan.
Belgium's incoming governments face the major task of deciding how to reduce the budget by around €28 billion in the coming years, either by cutting spending or increasing government income.
Pressure on formations
If it fails to meet the new deadline, Belgium will be forced to follow a rigorous savings plan over four years, instead of over seven. The Central Economic Council (CEC) last year "strongly" recommended that Belgium opt for the seven-year adjustment period to avoid abrupt cuts that could weaken key sectors of the economy.
The Commission is therefore increasing the pressure on Federal Government negotiations. To meet the new deadline, an agreement on credible reforms must be reached by the end of March. Negotiations on a so-called 'Arizona' coalition – including right-wing N-VA, liberal MR, Christian Democrats CD&V, centrists Les Engagés and socialists Vooruit – are still ongoing. Formator Bart De Wever's (N-VA) assignment has been extended until 31 January.
The most urgent reforms are those of pensions, the labour market and tax reform.
The Belgian State is in the midst of an excessive deficit procedure. It is one of seven EU Member States under fire for overspending, as its annual budget deficit and growing overall debt are beyond acceptable limits set by EU law. The other countries concerned are France, Italy, Hungary, Malta, Poland and Slovakia.
