Belgium abstains in final vote on key budget rules text

Brussels – Belgium was the only member state to abstain on Monday in the final vote on a key text of the new European budget rules. It did not prevent the new framework for monitoring national budgets from being definitively approved and becoming effective for the preparation of the budgets for next year.

The member states voted on the two key texts of the new European framework for monitoring national budgets. The regulation on the excessive deficit procedure was unanimously approved, while the vote on the regulation on the coordination of economic policy and budgetary supervision had one abstention: Belgium. However, the required qualified majority was not jeopardized.

Last week at the final vote in the European Parliament, it was already clear that the federal coalition disagreed on the compromise that Minister of Finance Vincent Van Peteghem (CD&V) had earlier this year negotiated on behalf of the Belgian presidency of the Council with the European Parliament. MR, Open VLD, and CD&V voted in favor, while the Green and Socialist coalition partners voted against.

The new framework offers member states a tailor-made trajectory to set or maintain public finances on a sustainable path in the medium term. The framework takes into account interventions that make finances healthier in the long term, such as pension reforms. However, there are also specific rules for countries with debt exceeding 60 percent of GDP and/or a budget deficit exceeding 3 percent, like Belgium.