Belgian government reaches budget deal after months of talks
Belgium has reached a major agreement on its 2026 budget following months of tense negotiations, Prime Minister Bart De Wever announced on Monday.
De Wever had previously set a Christmas deadline for the five-party coalition to settle disputes over government finances. The breakthrough came after marathon talks that began Sunday morning and continued into early Monday, News.Az reports, citing Reuters.
Key points of the budget deal
- New taxes: Increases on share purchases, airplane tickets, and natural gas, as well as a new tax on banks.
- Spending cuts: Measures aimed at reducing government expenditure.
- Deficit reduction: The combined measures are expected to lower Belgium’s government deficit by €9.2 billion ($10.6 billion) by 2029.
Currently, Belgium’s budget deficit is projected to reach 4.5% of GDP this year, with government debt at 104.7% of GDP — exceeding EU rules for fiscal limits.
Despite the budget agreement, a three-day national strike over previously announced pension reforms is set to begin on Monday. The strike is expected to heavily disrupt train and air travel, with Brussels Airport already cancelling all departing flights last Wednesday as security and handling staff join the action.
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