Belgium’s Federal Government must find €7.7 billion by 2029 to meet its EU commitments, according to a monitoring committee report that trade unions have described as deeply worrying.
In a reaction published on Monday evening, the socialist trade union FGTB said the report was "alarming" and urged the Federal Government to act on taxation.
The union called for a broad reform of personal income tax, arguing for a more comprehensive approach to how individuals’ income is taxed.
The Christian trade union CSC, for its part, called for a wealth tax and for lower taxation on income from work.
According to the monitoring committee, which brings together senior civil servants tasked with overseeing the budget, the federal budget deficit will reach €25.68 billion this year, or 3.9% of GDP.
Without policy changes, the deficit is expected to rise to €38.275 billion by 2029, the final year of the legislature, equivalent to 5.2% of GDP.
By 2031, it is projected to increase further to €44 billion, or 5.7% of GDP.
To stay on track with its European obligations, the government will need to identify €7.7 billion by 2029. That figure rises to €9.8 billion by 2031.
The Federal Government is due to enter budget talks in the coming days, with preparatory work already under way.
The report had been eagerly awaited as it provides the latest picture of the country’s public finances.
