Belgium continues to have one of the highest debt levels in the EU, according to latest data from Eurostat, as the State has until the end of the year to come up with a budget plan on how it plans to tackle overspending.
Across the euro area, general government gross debt (as a percentage of GDP) stood at 88.1% at the end of the second quarter of 2024, while in the EU the ratio stood at 81.5%.
However on Tuesday, a Eurostat report highlighted that Belgium had one of the "highest ratios" of government debt to GDP by the end of the second quarter, at 108% (beaten only by France at 112.2%, Italy at 137%, and Greece at 163.6%).
Meanwhile, in the second quarter of 2024 the seasonally adjusted government deficit to GDP ratio stood at 3% in the euro area, and 3.1% in the EU.
Belgium's seasonally adjusted deficit was also bigger than the EU and eurozone averages, standing at 5.1% at the second quarter (beaten only by Finland at 5.4%, France at 5.5%, Slovakia at 5.5%, Romania at 7.1%, and Poland at 8.1%).
Excessive deficit procedure
Under new fiscal rules introduced earlier this year, EU Member States have to make regular reports to regulators about the state of their public finances, and are required to keep their annual budget deficit below 3% of gross domestic product (GDP), and their overall debt below 60% of GDP.
Belgium is one of seven Member States that have been called out by EU regulators for breaching these limits, and as a consequence is currently going through the excessive deficit procedure.
The State has until the end of the year to submit a multi-annual budget plan on how it plans to reduce its annual deficit and overall public debt.
The Central Economic Council has recommended that Belgium opt for a longer seven year plan (rather than the default four years), to better spread out the impacts of any budgetary measures.
