Belgium's federal debt fell by €5.13 billion last month and is now below €500 billion – a positive progression as the EU continues to pressure the State to improve its public finances.
Latest figures from Belgium's Federal Debt Agency show that net Federal Government debt stood at €496.259 billion at the end of July. The debt has been hovering around the €500 billion mark in recent months, falling below in April and May but then rising above €500 billion again in June.
The figures come in the context of an excessive deficit procedure launched by the EU regulators against Belgium last month. Belgium 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.
A major task for Belgium's incoming governments will be deciding how to reduce the budget by around €28 billion over the next four to seven years, either by cutting spending or increasing government income.
A first step is to draw up a plan for national expenditure over the next five years, including how the burden will be shared between regional and community parliaments. This must be submitted to the European Commission by 20 September.
Latest figures from the Federal Debt Agency note that the State's gross federal debt – which includes investments and portfolio securities – stood at €521.868 billion by the end of July (up by €258.31 million since June).
The average maturity of Federal Government debt increased by 0.16 years to 10.80 years, while the average interest rate on debt instruments fell to 1.93%. The refinancing risks at 12 and 60 months were 13.87% and 38.04% respectively.
