Brussels, 21 September, (Brussels Morning Newspaper) – Belgium’s federal government is entering a critical stage of Belgian budget talks, with Prime Minister Bart De Wever’s coalition seeking measures worth €10 billion by 2029. De Wever has circulated a draft budget note to coalition partners ahead of a core cabinet meeting scheduled for Monday at 10:00, as ministers work towards an October deadline for the 2027 federal budget.
Federal coalition starts new round of budget talks
De Wever’s five-party Arizona coalition — N-VA, MR, Les Engagés, CD&V and Vooruit — faces difficult negotiations over where savings should be made and whether additional revenue should be raised.
The government agreed in July to pursue an additional €10 billion fiscal effort by 2029. That is above the estimated €7.7 billion considered necessary to meet European expenditure commitments, reflecting concern about Belgium’s growing interest costs and debt burden.
Speaking at N-VA’s family day in De Panne on Sunday, De Wever confirmed that the draft note had been distributed.
“At some point you have to begin if you want to meet the deadline,” he said, while acknowledging that coalition parties remain far apart on several issues.
Belgium faces deficit and debt pressures
The negotiations come as Belgium faces significant pressure on its public finances. Latest figures cited during the budget debate put the deficit at about 5.2% of GDP, while government debt is above 110% of GDP in 2026.
Officials are particularly concerned about an interest-rate “snowball” in which the government would increasingly need to borrow to service existing debt. The €10 billion target also follows earlier budget rounds in which the coalition announced measures totalling around €32 billion.
De Wever underlined the limited room available to the federal government during a parliamentary committee meeting on 16 September.
“I think we can handle one more round of restructuring, and then it’s over,” he said while arguing that broader institutional reform would eventually be required.
VAT and healthcare measures remain under discussion
Among the options examined during the Belgian budget talks are changes involving VAT, healthcare expenditure, taxation and government administration.
The Federal Planning Bureau prepared around 250 potential measures ahead of negotiations. Its options included VAT reform and changes to the tax treatment of company cars, although inclusion on the list does not mean a measure has government approval.
Coalition parties have already drawn lines around politically sensitive proposals. CD&V leader Sammy Mahdi has strongly opposed ending the favourable company-car regime, while other parties have disagreed over wealth taxation, healthcare savings and the balance between spending reductions and new revenue.
Government works towards 13 October deadline
The federal government has set 13 October as its target for presenting the completed budget plans to Parliament. Belgium must subsequently submit its budgetary plans to European authorities.
The coming weeks will therefore focus on converting the €10 billion objective into agreed measures acceptable to all five coalition parties. Until those negotiations conclude, individual tax increases or spending cuts under discussion remain proposals rather than confirmed government policy.
