European Commission: without absorbing budget deficit, Belgium’s government burden will be onerous
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    European Commission: without absorbing budget deficit, Belgium’s government burden will be onerous

    © Belga
    European Commission is Belgium's economic “prophet of doom.”
    © Belga

    European Commission budget forecasts confirm the worries of the PS. These are that the Michel government will not be in a position to absorb its structural budget slippage. The Socialist deputy, Ahmed Laaouej, confirmed this today (Monday).
    Mr Laaouej says that the government is unlikely balance the budget by the end of the current legislature. This will be the case unless it makes further substantial cuts in the cost of services. Present population service demands have not, up to now, produced the anticipated effects.

    The Commission considers that the structural deficit will reach 2.2 % of GDP by 2018.

    The Socialist politician, interviewed by the Belga press agency has reiterated this. He said, “I believe we have to find some 10 billion euros to reach the point of equilibrium. This means that the Michel government will not succeed in reaching budgetary equilibrium, except by further substantial cuts in services.”

    For this specialist in fiscal matters, the perspectives, which justify the Commission’s analysis, “also demonstrate the failure of the MR-New Flemish Alliance government’s economic policy.” Furthermore they demonstrate “the lack of results [yielded by] all of the perks offered to employers.”

    Laaouej’s view is that no positive result will be achieved around the dynamic of tax bases alone.

    Mr Laaouej says that the Belgian government’s action is ending in the failure of its economic, budgetary and social policies, as we wrongly believe that making sacrifices would have a positive impact on state finances.

    He went further, “This government is purely a mechanism for ruining the country. Net job creation is marginal when put alongside wage reductions proceeded by significant price index increases.”

    Oscar Schneider
    The Brussels Times