The plans that were on the table in the Federal Government formation talks are "not enough" to restore the budget, according to Pierre Wunsch, governor of the National Bank.
The leaked budget table by formator Bart De Wever (N-VA) shows that there were plans to save €13.5 billion, including through a reform of the labour market and pensions and by cutting the budget for asylum and migration, among other things.
"There is a clear will to implement a number of reforms," Wunsch said on Flemish television on Sunday. "Certainly at the level of the labour market, there seems to be a clear will to reform. Where they will end up is not yet clear."
However, he is less optimistic about the figures themselves. "In terms of the budget, I fear that it will not be enough," said Wunsch. "There are many payback effects in the note, which is actually not allowed by Europe."
Meanwhile, the budget deficit is spiralling out of control, he said. "We do not have any buffers left to absorb the next shock or crisis. We did a good job with the Covid-19 and energy crises. But with a deficit that is going to 6% if we don't change policies, we do not have the power to do that in the future."
