The main ministers of the Federal Government will meet on Friday at 19:00 to resume discussions of Belgium's budget. Talks have been ongoing this week to finalise changes in an effort to address the national deficit.
This weekend and on Monday, ministers of the "Vivaldi" government will be on the home straight ahead of Prime Minister De Croo's traditional policy statement to Parliament on Tuesday 10 October.
The outcome will decide the final budget for the end of the government's legislature ahead of national elections in June. Work was interrupted this week as De Croo attended the informal European Political Community Summit in Granada, which ended on Friday afternoon. So far, ministers have mainly been reviewing new savings measures and new tax revenues.
This weekend's talks will address the most politically sensitive topic of the Stability Pact, which Belgium must submit to the European Commission to prove fiscal responsibility. Ministers are aiming for proposals that will save at least €815 million, though the final value of changes has not yet been determined.
Secretary of State for the Budget Alexia Bertrand (Open Vld) has indicated on several occasions that she intends to maintain the €1.2 billion target to bring Belgium's deficit to below 3% of GDP by 2026.
Where's the money coming from?
In recent days, the press has reported on the various measures. Most notably, these have included:
- Increasing tax on stocks and shares accounts
- Increasing the "Cayman tax" on offshore accounts
- Taxing excess profits in the banking sector due to the rise in interest rates
- Increasing airport tax, which is much lower in Belgium than in neighbouring countries.
This weekend will see ministers hammer out the various proposals, though parties diverge on some measures. For instance, the tax on excess bank profits is not favoured by either the CD&V or the Liberals, who instead favour getting banks to raise interest rates on savings accounts.
Deputy Prime Minister Georges Gilkinet (Ecolo) told La Libre this wee that between €300 million and €400 million would have to be raised from capital via taxation. However, liberal partners in government advocate spending cuts instead.
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The government will also have to take account of "new demands", including the need to set aside more funds for processing and housing asylum seekers in a saturated network. Minister for the Interior Annelies Verlinden has called for resources for civil protection and emergency centres, as well as the police.
She highlights the need to invest in digital systems to relieve officers of administrative tasks, ensure security around railway stations, and fight organised crime.
