Belgium's cabinet to convene again to clarify budget sticking points

Belgium's cabinet to convene again to clarify budget sticking points
MR leader Georges-Louis Bouchez and Prime Minister Bart De Wever pictured during a plenary session of the Chamber at the federal parliament, in Brussels, Thursday 05 June 2025. Credit: Belga

The Belgian Government's inner cabinet is expected to reconvene on Friday following significant progress on measures from the recent budget accord made during a late-night meeting on Tuesday.

The Federal Government reached a budget agreement ten days ago, and since then, the prime minister and vice-prime ministers have been working on finalising the details.

Discussions on Tuesday focused on issues such as whether the VAT increase for takeaway meals will also apply to supermarket prepared meals.

Additionally, MR is reportedly advocating for an exception for the Pairi Daiza zoo in Hainaut, arguing that it offers education rather than pure entertainment. The zoo is based just outside of its leader George-Louis Bounchez's home city of Mons.

Another key topic is "capping index", which proposes a wage indexation cap of €4,000 gross and pension caps of €2,000 in 2026 and 2028.

Questions remain about whether this regulation will be approved by year-end.

Meanwhile, according to the Federal Planning Bureau, the pivotal index could be exceeded as early as this month, potentially increasing public sector wages and social benefits by March. This projection was previously anticipated for January.

Reports from Het Laatste Nieuws suggest the index cap’s implementation might be delayed by a year. However, government sources indicate the inner cabinet did not discuss this on Tuesday.

Despite progress being made, the meeting, which ended around 2am, did not clarify which issues were resolved. A source remarked, "There is no agreement until there is agreement on everything."

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