Europe points out the shaky Belgian budget

The European Commission presented its analysis of the Belgian budgets in the House of Representatives today. But what is framed by the Vivaldi government as a relatively decent report turns out to have very shaky foundations. “The very lowest economic growth in Europe is expected in Belgium,” Sander Loones responds with concern. “Belgium is also the only heavily indebted country where the national debt will rise even further. And the budget deficit remains Southern Europe-style high.”

Twelve countries are coming under closer scrutiny by the European Commission. Belgium is not among them. The federal government is using that fact to promote its budget report as “reasonably successful”. But the full European analysis shows a different picture.

“Champion” in low growth

The European Commission calculates the economic recovery throughout Europe. “Growth in all EU countries will be stronger than Belgium in 2022,” Sander Loones notes. On average, economic growth is expected to be 4.3% in the Eurozone, while it will be only 2.6% in Belgium. All other Member States are doing better than Belgium.

“Champion” in high debt

“If you compare the debt champions of Greece, Italy, France and Belgium, it is striking that only in Belgium will the debt increase,” Sander Loones says. “The European Commission also expects a further increase in 2023.” This puts Belgium in a tiny group of only four countries where the national debt will increase next year: Belgium (113%), Estonia (20%), Latvia (50%) and Malta (62%). But where those three other countries have their debt ratio under control, Belgium exceeds it considerably.

“Champion” in budget deficits

5.1% in the red. That is what Europe anticipates the Belgian budgets to be in 2022. “We are thus recording Southern European-style figures,” Sander Loones notes. As in Belgium, the deficits of Spain, France, Malta and Italy also exceed 5%. The Northern European countries are already scoring below the deficit threshold of 3%. For example, the Netherlands is at 2.1%, a big contrast with Belgium. “It is striking that even Greece can produce better figures than Belgium. The deficit there will be 3.9%,” Sander Loones concludes.