Belgium Targets €10 Billion in Budget Savings by Mid-October

The Belgian federal government under Prime Minister Bart De Wever has officially set a target of finding €10 billion in budget savings by mid-October, according to De Morgen. The ambitious goal, agreed upon during a government summit on July 10, goes well beyond the €7.7 billion minimum identified as necessary by the country’s Monitoring Committee (Monitoringcomité) to meet European spending norms by 2029.

Context: A Fiscal Crisis Deepens

Belgium faces one of the most severe fiscal challenges in the Eurozone. The federal budget deficit is projected at €30.3 billion next year, rising to €38.3 billion — or 5.2% of GDP — by the end of the current legislature in 2029. The country is already under the EU’s excessive deficit procedure, with public debt standing at 107.9% of GDP against an EU reference of 60%.

All three major credit rating agencies — S&P, Fitch, and Moody’s — have downgraded Belgium’s rating in the past year due to persistent budgetary difficulties, as VRT NWS reported. The International Monetary Fund has also recently warned that financial markets are closely watching Belgium.

Why €10 Billion Instead of €7.7 Billion?

The government is setting a target €2.3 billion higher than the minimum required. According to a written statement from the Prime Minister’s office cited by De Morgen, the aim is to “avoid a possible interest snowball effect” by achieving the spending norm for 2031 two years earlier. The additional buffer is intended to signal fiscal credibility to bond markets and credit rating agencies, and to provide insurance against potential economic deterioration.

Minister of Budget Vincent Van Peteghem (CD&V) confirmed that the €7.7 billion figure represents the “minimum effort needed to comply with European budget rules,” but acknowledged that the challenge grows significantly after 2031, reaching nearly €10 billion.

Timeline and Political Dynamics

Negotiations are scheduled to begin in early September, with a deadline of mid-October — coinciding with the Prime Minister’s State of the Union address and the deadline for submitting budget plans to the European Commission on October 15.

De Wever addressed Parliament on July 9, using stark language to underscore the urgency. “The Titanic hit the iceberg in this country a long time ago,” he said. “We must now try to make the ship seaworthy again.” He warned that “if fear paralyzes us, we will be mercilessly held accountable for it.”

The €10 billion target masks significant ideological divisions within the five-party “Arizona coalition,” which consists of N-VA, MR, Les Engagés, CD&V, and Vooruit. MR Chairman Georges-Louis Bouchez has explicitly rejected a wealth tax, arguing that such measures “start with the rich, but always shift and end up with the ordinary taxpayer.” He advocates pruning government spending and stimulating economic growth instead.

Previous Savings and Future Challenges

The government had already committed to significant savings: €22 billion agreed during coalition formation in early 2025, plus €9 billion in the 2026 budget approved in November 2025. The new €10 billion target is on top of these previous efforts.

According to reporting from Knack, potential measures under consideration include reform of the automatic wage indexation system, higher VAT rates, lower growth norms in healthcare spending, stricter approaches to long-term sickness benefits, and pension reforms.

What’s Next

The coming months will test the cohesion of the De Wever government. With divergent ideologies on tax increases versus spending cuts, and each party seeking to protect its constituencies, the tight deadline from September to mid-October leaves limited room for prolonged negotiation.

The European Commission will review Belgium’s draft budget plans following the October 15 submission, with its autumn package expected in November. Parliament must approve the 2027 budget by December 31.

As De Wever himself acknowledged, the budget will weigh heavily on his mind throughout the summer break. “I can say one thing,” he told VTM Nieuws. “I’ll think about it in the morning during my vacation, in the evening, and a bit in between too.”