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European Commission opens budget procedure against Belgium

by AI | 19.Jun 2024 | Europe in brief AI

The European Commission wants to start a procedure against Belgium because of the large budget deficit. She announced this on Wednesday. It means that our country must reduce its deficit by at least 0.5 percentage points annually.

Vice President Valdis Dombrovskis and Commissioner Paolo Gentiloni present the member states' budget reports (EFE/EPA/OLIVIER HOSLET)

The Commission had already announced earlier that for the first time in years it would once again initiate so-called excessive deficit procedures against countries facing what is considered an unsustainable budget deficit. The new budgetary rules, which were adopted this spring, also stipulate that deficits must remain below 3 percent of GDP.

Twelve countries were examined, and the Commission now wants to open a procedure against seven of them: Belgium, France, Italy, Malta and Slovakia in the eurozone, and the non-euro countries Hungary and Poland. With a deficit of 4.4 percent by the end of 2023, which would remain at the same level in 2024 and rise to 4.7 percent in 2025, there was no question of deliberating Belgium.

The procedure means that Belgium must reduce its deficit to less than 3 percent, at a rate of at least 0.5 percentage points per year (structurally). The political parties that will negotiate a new government know immediately where they stand.