Europe grants Belgium a reprieve for its budget

The European Commission grants Belgium additional time, under certain conditions, to present its seven-year budget plan.

Initially, Belgium was to submit its budgetary plan to the European Union (EU) but twice requested a postponement. In September, the resigning government of Alexander De Croo requested an extension until the end of 2024. When the impossibility of presenting a balanced budget plan became clear, the Belgian permanent representative to the EU, Peter Moors, made a second request on December 26, specifying that it would be a plan benefiting from “strong political commitment from the new federal government”.

The European Commission’s response is expected to arrive this week in the form of a letter from Maarten Verwey, director general of the Directorate General for Economic and Financial Affairs (Ecfin). This letter grants Belgium additional time, while setting a deadline of April 30, 2025, L’Echo and De Tijd reported on Wednesday. By this deadline, the country must have finalized its reforms. In the event of non-compliance with this condition, Belgium will have to implement a strict savings plan over four years, instead of being able to spread it over seven years.

The move reflects increased pressure from the European Commission on negotiators involved in budget discussions.