MENA Newswire News Desk: In a move that underscores ongoing governmental instability, Belgium has postponed the submission of its budget plans to the European Commission, citing the need for more time as the country struggles to form a new federal government. This delay comes under the European Union’s excessive deficit procedure, where member countries must adhere to strict budgetary constraints. Belgium’s original deadline for submitting its budget was September 20.
The delay is largely due to faltering negotiations over forming a coalition government, with significant disputes over budgetary measures. This impasse raises concerns about Belgium’s ability to meet the EU’s fiscal requirements in a timely manner. The EU’s excessive deficit procedure requires that deficits not exceed 3% of GDP, a threshold Belgium is currently at risk of surpassing. Belgium is among six EU countries including France, Hungary, Italy, Malta, Poland, and Romania, now facing scrutiny for excessive deficits.
The European Commission initiated formal deficit procedures against these nations, aiming to curb fiscal disparities that threaten economic stability across the bloc. For Belgium, the anticipated general government deficit is projected to hit 4.6% of GDP in 2024, up from 4.4% the previous year. This rise is attributed to increased expenditures on military upgrades and pension commitments. Belgium’s public debt also remains a concern, currently standing at 105.2% of GDP—far exceeding the EU’s recommended ceiling of 60%.
Experts express unease over Belgium’s fiscal health, predicting a 2025 deficit of approximately €29.4 billion. In response, the European Commission has offered a “reference trajectory” under its policy development programme, advising countries on aligning their fiscal plans with EU priorities. This guidance could extend the adjustment period for reducing debt levels from four to seven years, provided the plans are executed effectively. The revised deadline for Belgium to submit its budget plans is now set for October 17, giving the nation a narrow window to align its fiscal strategy with EU standards.