Axel Ronse: “We need a debt brake to prevent spiralling interest costs”

Prime Minister Bart De Wever has proposed introducing a “debt brake” to his deputy prime ministers — an emergency mechanism that could be activated immediately if pressure from the financial markets on Belgium became too great.

Meanwhile, negotiations remain in full swing over an ambitious multi-year budget aimed at delivering €10 billion in savings by 2029. Speaking on Villa Politica, N-VA parliamentary group leader Axel Ronse explains the thinking behind the proposal and stresses that the government remains fully committed to its ambitious fiscal consolidation plans.

“€10 billion in savings remains our firm ambition”

Reports have emerged in the media suggesting that the government might be abandoning its budgetary targets, but Ronse firmly dismisses such claims.

“There are all sorts of wild stories going around suggesting we've given up on our ambitions. Nothing could be further from the truth,” says Axel Ronse. “The N-VA and Prime Minister De Wever remain absolutely determined to deliver €10 billion in savings by 2029 — and ideally considerably more.”

Prime Minister De Wever has been sounding out his deputy prime ministers on how to buy more time to develop the comprehensive fiscal consolidation package without unsettling the financial markets.

“Bart has been working on an extensive list of measures for weeks,” Ronse explains. “As reaching an agreement on the entire package will take more time, he has proposed preparing an emergency mechanism in parallel.” This would allow the government to act immediately should the markets force its hand.

Protecting Belgium from a tsunami of interest costs

The need for a debt brake stems from Belgium’s staggering €570 billion debt burden and the threat of rising interest rates. According to Ronse, the financial markets have confidence in De Wever’s approach, but are watching the negotiations closely.

“We're facing a snowball effect in interest costs, driven by our €570 billion debt and interest rates that could climb towards 5%,” Ronse warns. “If the markets see that no solution is forthcoming, those rates will shoot up. And if we end up having to tell people that their taxes are being used for nothing but paying interest on government borrowing, that's sheer madness.”

The emergency mechanism is therefore intended to act as a safeguard. “Having an emergency button we can press to protect society from a tsunami of interest costs is an extremely sensible idea,” says Ronse.

“Everything remains on the table”

Ronse firmly rejects suggestions that introducing a debt brake would mean abandoning reforms such as the proposed VAT adjustments.

“That is a complete misrepresentation of the situation,” Ronse explains. “Everything that was on the table stays on the table, and discussions on all those measures are continuing in parallel. For us, agreeing on the full package for 2029 remains an absolute prerequisite.”

According to Ronse, the coalition parties simply cannot afford to fail. “It's an incredibly difficult puzzle to solve, but I see courage and a genuine willingness to find solutions among all our coalition partners,” he says. “Bart De Wever is the right man in the right place to see this through.”

“If we fail, the only alternative is an election — and that's the worst outcome imaginable,” Ronse concludes. “It would come at an enormous cost to society as the financial markets would lose confidence. That's why, as far as we're concerned, failure simply isn't an option.”