On Thursday 12 June, the Eurogroup endorsed the European Commission’s assessment that Belgium’s draft budget plan for 2025 complies with the rules of the revised Stability and Growth Pact, subject to the activation by the Council of the European Union of the pact’s national opt-out clause, which will allow 16 EU countries to increase their national defence spending.
At the beginning of June, the Commission recommended a new path for correcting Belgium’s excessive public deficit by 2029, compared with 2027 previously (see EUROPE 13653/2). It also approved growth in net public spending of 5% in 2025, taking into account the activation by Brussels of the national derogation clause in the pact.
According to the Eurogroup, “while the projected net expenditure growth in 2025 exceeds the ceiling set in Belgium’s medium-term fiscal structural plan, it remains within the flexibility provided by the national escape clause” offered by the Pact. “We invite Belgium to stand ready to take action as necessary in line with the risks outlined in the Commission assessment and to deliver on its fiscal commitments”, adds the Eurogroup in its press release.
According to the Commission’s spring economic forecasts, growth in Belgium should reach 0.8% of GDP in 2025. The Belgian public deficit is set to rise from 4.5% to 5.4% of GDP this year, while public debt is set to increase from 104.7% to 107.1% of national GDP.
See Belgium’s draft budget plan for 2025: https://aeur.eu/f/hbo (Original version in French by Mathieu Bion)