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Belgian PM Sets Christmas Ultimatum for Budget Deal

He seeks about €10 billion in savings to rein in a widening deficit.

Overview

  • Bart De Wever told parliament he asked King Philippe for 50 days to secure a budget, warning there will be no extension beyond Christmas.
  • The five-party coalition remains stuck over how to repair the public finances, with the MR party rejecting a VAT increase and a pause to automatic wage indexation.
  • De Wever is pushing measures reported to include labour-market liberalisation, curbs on long-term unemployment benefits and lower pension costs by 2030.
  • Belgium’s deficit is projected at about 4.5% of GDP this year with debt around 104.7% of GDP, according to the central bank.
  • Recent drone sightings that shut several airports prompted an emergency meeting, and ministers said Belgium will enhance airspace surveillance; De Wever is also seeking guarantees before backing an EU loan to Ukraine tied to frozen Russian assets held largely at Euroclear.