The discussions were set to get to the heart of the matter, and Minister Karine Lalieux commented that things were progressing slowly upon arrival at 16 rue de la Loi. Lalieux replaces Deputy Prime Minister Pierre-Yves Dermagne, but the other ministers did not comment. The government’s second weekend of conclave has begun, and there is no indication that discussions will conclude on Sunday. The final deadline remains next Friday, on the eve of the Easter holiday. The Monitoring Committee provided positive news to the federal team a week before, stating that the total deficit of all entities in the country would be more than €6 billion lower than the initial estimate of €33 billion. Belgian public finances’ outlook is bleaker in the years to come, but a new estimate has softened the forecast a little. Some media have mentioned an additional effort of €1.8 billion over two years, which has increased to €1.5 billion. The government has reservations regarding this and noted that it is a control of the 2023 budget that must be carried out without discussing tax or pension reform.
A good source, it was emphasized that the discussions were going to get to the heart of the matter. “Things are progressing slowly,” commented Minister Karine Lalieux on her arrival at 16 rue de la Loi.
The PS Minister replaces Deputy Prime Minister Pierre-Yves Dermagne. The other ministers did not comment.
The government begins its second weekend of conclave. There is no indication that the discussions will conclude on Sunday. The final deadline remained next Friday, on the eve of the Easter holiday.
The federal team received positive news from the Monitoring Committee a week ago. The total deficit of all entities in the country would be more than 6 billion euros lower than the 33 billion euros initially estimated. For the federal government, this represents an improvement of 3.2 billion euros. Indeed, inflation is weaker than expected. In addition, energy prices have fallen such that the cost of the social tariff is lower than expected.
On the other hand, the outlook is bleaker for Belgian public finances in the years to come. However, a new estimate has softened the forecast a little. The Monitoring Committee expected a deficit of 38.4 billion euros for the federal government in 2028. A new analysis by the administration reduces this deficit to 33.4 billion euros, or 4.9% of GDP .
Faced with this situation, some media have mentioned an additional effort of 1.8 billion euros over two years. The revision of the calculations would have increased this figure to 1.5 billion, according to the Echo. On the government side, reservations were in order: there is no agreement on this point, we were assured by a good source. “It is a control of the 2023 budget that we must carry out, and anticipate the rest a little, continue the transition and ensure that everyone can live with dignity”, it was noted.
This fiscal adjustment will be concluded without discussing tax reform or pension reform.
As the federal government completes its second weekend of discussions, it remains unclear when the long-awaited decisions will be reached. The recent news of the improved deficit has brought some relief, but it does not mean the outlook for Belgian public finances is entirely positive in the years to come. Meanwhile, the possibility of an additional effort of 1.5 billion euros is still up for debate, with reservations from the government. Whatever the outcome may be, it is clear that this fiscal adjustment will be concluded without discussing tax reform or pension reform. We await the final decisions with bated breath.
