PM: Belgium plans 2bn euro budget buffer for 2029
Belgium’s new federal government has included a 2 billion euro buffer in its 2029 budget to mitigate economic uncertainties and potential shortfalls in expected revenues, prime minister Bart De Wever told Parliament on Wednesday. He remains confident that the European Commission will approve the government’s budget strategy.
During a session of the Chamber Committee on the Interior, opposition MPs questioned the feasibility of the government’s financial plans. Critics particularly highlighted concerns over optimistic revenue projections and the exclusion of 770 million euros in defence spending from the budget.
De Wever defended his government’s reform plans, which he expects to generate positive returns in the medium term.
“By Belgian standards, these reforms are unprecedented”
“By Belgian standards, these reforms are unprecedented,” he said. However, he acknowledged that 2025 would be a difficult year, with the extended time taken to form the government delaying necessary fiscal changes.
To address potential financial risks, the government has built a 2 billion euro buffer into the 2029 budget. This reserve is designed to absorb any setbacks due to changing economic conditions or lower-than-expected returns from planned reforms.
“With this, we are actually doing more than what Europe strictly requires in terms of spending norms,” De Wever said, emphasising the government’s approach to fiscal stability.
Resistance from unions
The formation of De Wever’s government and its proposed reforms have sparked strong opposition from trade unions. Earlier this month, around 50,000 protesters marched through Brussels to voice their discontent over the new policies.
Since last week, Belgian rail services have been severely disrupted by a nine-day strike led by two smaller rail unions. Further public transport disruptions and strikes have already been announced.
Despite the backlash, the prime minister insists that the fiscal reforms are essential to tackling Belgium’s growing public deficit and securing long-term financial stability. Without these measures, De Wever warned in Parliament, the federal government and social security system would be heading toward a 40 billion euro deficit, calling it “the unique red lantern of the eurozone”.
Prime minister Bart De Wever during a session of the Chamber Committee on the Interior © BELGA PHOTO BENOIT DOPPAGNE