French budget crisis is a warning sign for Belgium
French prime minister Michel Barnier submitted his government's resignation to president Emmanuel Macron on Thursday after losing a vote of no confidence in parliament.
With a growing budget deficit and no government, the French crisis is a warning for formateur Bart De Wever if Belgium's government negotiations were to fail.
The French government fell on Wednesday after parliament passed a vote of no confidence. Barnier's government planned to push through its budget, which included a 60 billion euro deficit reduction, without parliamentary approval.
No one knows where the country will go from here. France urgently needs to reduce its budget deficit, one of the highest in Europe. But with new parliamentary elections not due until July and no group large enough to form a majority, the French government has reached an impasse.
Party divisions
The French budget crisis is a warning for Belgian government formateur and N-VA leader De Wever. He had hoped to quickly form a coalition with MR, Les Engagés, CD&V and Vooruit to tackle the country's budget deficit, but more than half a year after the June elections, no coalition has been formed.
As in France, the parties are divided over how to handle the budget. The N-VA wants to implement far-reaching austerity measures, while Vooruit wants to increase purchasing power and investment in healthcare.
Belgium has already missed the EU's September deadline for budget proposals. The European Commission has given the country until the end of the year, but even this deadline will be difficult to meet, as budget negotiations often take weeks, if not months, to complete.
Potential sanctions
The question is what the Commission will do to countries that miss the deadline. It has threatened sanctions such as budgetary surveillance and fines for countries that fail to reduce their budget deficits. Sanctioning France would fuel anti-EU sentiment, but not doing so would undermine the credibility of the Commission.
In any case, De Wever must ensure that he comes up with a budget proposal that is acceptable to all five parties, as that is the only workable majority. If not, Belgium risks falling into a crisis, just like France.
© PHOTO ALAIN JOCARD / AFP
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