The European Parliament approves new budget rules, and this also has consequences for Belgium

European rules oblige member states to limit the budget deficit to a maximum of 3 percent of gross domestic product (GDP) and the national debt to 60 percent. The rules were suspended during the corona crisis and the first years of the war in Ukraine to give member states space to shore up their economies, but they will now apply again in view of the preparation of the 2025 budgets.

The existing thresholds of 3 and 60 percent remain unchanged, but the new framework offers Member States some more flexibility and a more tailor-made path to rationalize public finances to a maximum of three percent over a period of four to seven years. As a bargain, stricter action would be taken from now on if Member States continue to flout the rules.

Belgium, with its large deficit and high national debt, certainly faces a tough challenge. According to estimates, our country would have to make an effort of approximately 27 billion euros in the coming years. Minister of Finance Vincent Van Peteghem (CD&V) tells VRT that Belgium should make an annual effort of an average of 0.57 percent of gross domestic product for seven years. This amounts to approximately 3.4 billion euros per year.