Belgium’s federal government has shelved, for now, plans for an emergency package of measures worth about €4 billion for 2027 and will instead focus on securing a multi-year budget aimed at delivering €10 billion in savings by 2029.
Prime Minister Bart De Wever announced the shift on Saturday afternoon after talks within the core cabinet. According to another participant in the negotiations, there is still hope of reaching an agreement later this week.
On Wednesday, De Wever had presented vice-prime ministers with a new proposal centred on an “emergency button” that could be pressed if pressure from the financial markets became too great. Under that approach, talks on a broader budget consolidation of €10 billion by 2029 would have continued in parallel.
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That two-track approach has now been dropped. In a statement, the prime minister’s office said the core cabinet had discussed preparing a stability law, in the event of temporary monthly budget allocations, to reassure financial markets and protect social cohesion.
After deliberations, however, the cabinet decided not to pursue that discussion for the time being and to concentrate instead on trying to reach an agreement on a multi-year budget involving a €10 billion effort.
By Saturday morning, the view had emerged that working out a debt brake would take too much time and political energy. Several parties considered the current proposal far from balanced, meaning the debate would have had to be reopened almost from scratch.
Against that backdrop, returning to the multi-year budget was seen as the more logical course.
According to one participant, the governing parties are due to enter a form of semi-conclave from Sunday evening, with an intensive schedule of meetings. There is even hope that a deal could be reached in the second half of the week.
David Clarinval, deputy prime minister for the MR party, said on Saturday afternoon that the debt brake had been put “on standby” to see whether discussions on the multi-year budget could move forward, taking into account that the VAT option had been dropped.
“But plan B is not dead,” he added.
Maxime Prévot of Les Engagés said the priority had clearly shifted back to the multi-year budget. He said all parties had voiced criticism of the proposed emergency law and the imbalance within it.
“If we are going to have a discussion revolving around the same issues and the same balances, then we should do it straight away on the basis of €10 billion rather than €4 billion,” he said. “That is more coherent if the aim is to reassure the financial markets, get the economy moving again and safeguard social cohesion.”
