• Wed. May 29th, 2024

Belgium’s Budget Deficit on the Rise despite Energy Crisis Measures: What Does This Mean for the Country?

BySamantha Nguyen

May 15, 2024
Belgian budget deficit projected to reach 4.7 percent in 2025 by the European Commission

Belgium’s deficit is projected to remain at 4.7 percent in 2025, despite the phasing out of energy crisis support measures, according to the Commission. The deficit is attributed to structurally increasing current expenditure, particularly for pensions, and higher interest rates on the national debt.

Belgium ended 2023 with a deficit of 4.4 percent, which will remain the same in 2024 despite the phasing out of energy crisis support measures. The debt ratio was 105.2 percent at the end of last year and is expected to decrease slightly to 105.0 percent this year. However, the rising budget deficit poses a threat of increasing the debt to 106.7 percent in 2025.

The Commission is expected to release a report on June 19 focusing on countries like Belgium that violated the three percent standard in 2023. The new fiscal rules will enforce stricter measures, and Member States must present budget plans by September 20, focusing on priority reforms and investments. Commissioner for Economy and Finance Paolo Gentiloni highlighted the need for budget rules to be respected with flexibility.

The Commission predicts a growth rate of 1% in the eurozone this year and an increase of around 1% next year due to private consumption and purchasing power growth across Europe. Belgium is expected to follow this trend with an anticipated growth rate of approximately 1% in both years supported by automatic indexation of wages and social benefits levels. Inflation rates are predicted to be around four per cent this year due to energy crisis support measures being phased out – highest in Euro zone countries – but are estimated to fall down by almost one percentage point in next year’s report from Commission’s experts analysis .

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply