Prime Minister Bart De Wever (N-VA) held bilateral talks with his deputy prime ministers on Friday morning as the government tried to revive budget negotiations, but it remains unclear when the core cabinet will meet again.
On Thursday, De Wever repeated his warning about the risk of a rising debt-interest spiral in Parliament. He said tougher measures would be needed later if the government failed to act now.
The warning follows a briefing on Wednesday by the National Bank and the Debt Agency to senior ministers. They said the pressure could begin to build from 2029, or possibly even sooner, unless clear consolidation measures are taken.
De Wever is now trying to secure enough backing from the coalition parties to continue negotiations on a common basis. The aim is to reach agreement on how the burden should be shared across the main areas of savings and revenue measures.
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One of the main sticking points remains the planned adjustment of VAT rates, which is particularly sensitive for the francophone liberal party MR. Other proposals are also meeting resistance, including a lower growth norm for healthcare spending.
The government is looking for €10 billion to bring the budget into line with European spending rules by 2029. De Wever is due to deliver his state of the union address in parliament on Tuesday, but there is little confidence that the government will meet that deadline.
