The European Commission will turn a blind eye to Belgium’s failure to meet the spending standard set for 2025, L’Echo reported on Friday night on its website.
Belgium should normally have reduced its budget by €3 billion this year to lessen its excessive deficit, as per the European executive’s spending standard.
Due to the prolonged formation of the federal government, Belgium plans to halve this target.
During informal contacts with the government, the European executive suggested that it would be flexible, provided the shortfall is compensated later, according to L’Echo. Belgium could thus increase its net public spending by 3.6% this year, 2.5% in 2026 and 2027, and 2.1% in 2028 and 2029.
This would mean only an annual restriction of just 0.1% on spending over the next four years, compared to the original plan.
The Council of Ministers approved the reform plan on Friday. It needs to be sent to the European Commission before 18 March.
The plan outlines the multi-annual budget framework and reforms proposed by federal and regional governments. Based on it, the European Commission will decide if Belgium has 4 or 7 years to comply with European budget governance.
Following contacts with the Commission, the Federal Government now hopes to secure a seven-year timeframe.
