PS and Ecolo reject proposal to cut 830 million euros from pensions in Budget conclave

The federal government is working on adjusting its budget, with Prime Minister Alexander De Croo reviewing all decisions made in October with his various ministers to ensure that expenditures and revenue levels are matching. Unforeseen expenditure, such as the asylum crisis, the war in Ukraine, and the fight against drugs, has had a greater budgetary impact than expected, although the deficit is increasing less rapidly than anticipated by the Monitoring Committee. Nevertheless, the deficit remains large, rising to 4.8% of GDP and a debt of 106.4%, which many economists predict could reach worrying levels if left unchecked. To counter this trend, De Croo intends to apply a stability program that would allow Belgium to return to the principles of the Maastricht Treaty, which requires that the annual public deficit should not exceed 3% of GDP.

To achieve this objective, an additional effort of 0.3% of gross domestic product needs to be made, which equates to finding 1.8 billion euros over the next two years. However, political parties do not seem determined to make these efforts, particularly when it comes to finding 830 million euros by not applying the fourth installment on the minimum pension. The left advocates against targeting social rights, while the right argues that certain expenses must be cut to avoid an economic crash. The PS appears to be more open to agreeing to spending cuts than environmentalists, who are focused on implementing new policies and positive messages. Several kerns are planned for the coming evenings to find common ground, with the goal of reaching a decision by March 31.

The federal government continues its budgetary adjustment marathon. Prime Minister Alexander De Croo pulled out his huge Excel table with all the budgetary decisions taken in October. With his various ministers, he now checks that everything corresponds to the level of expenditure and revenue.

In terms of unforeseen expenditure, we observe that the asylum crisis, the war in Ukraine and the fight against drugs have had a greater budgetary weight than expected. In terms of “revenues”, it is emphasized that the budget deficit is increasing less sharply than announced by the Monitoring Committee. Experts estimate this deficit at 3.2 billion euros less than when drawing up the budget in October 2022. Nevertheless, the deficit remains very large.

We are now talking about a deficit that rises to 4.8% of GDP and a debt of 106.4%. This should continue to increase to reach worrying peaks if nothing is done to limit it, warn many economists. To counter this trend, the Prime Minister wishes to apply a stability program which would allow Belgium to return to the nails of the Maastricht Treaty.

The European Union’s Stability Pact requires that the annual public deficit cannot exceed 3% of gross domestic product (GDP). With the Covid crisis, the EU has authorized its Member States not to respect this budgetary rule. But this general derogation clause ends in 2024 and the head of Vivaldi intends to bring public finances close to this obligation.

To achieve this objective, an additional effort of 0.3% of gross domestic product will have to be made, which means finding 1.8 billion euros over the next two years, i.e. 300 million in 2023 and 1.5 billion in 2024.

However, these efforts, all the parties around the table do not seem determined to make them. For 2023, the approximately 300 million are in principle found, with, among other things, an increase in excise duties on tobacco and some technical corrections. It is for 2024 that it gets stuck. And here, we see two camps confronting each other: the right which advocates cutting certain expenses “otherwise we are going straight into the wall” and the left which refuses that we touch on social rights.

It is a question of seeking 830 million euros by not applying the 4th installment on the minimum pension. “Alexander De Croo came up with three budgetary plans that want to hurt the most fragile. The socialists are not in government to make this acceptable, it is provocation”, we hear at the PS. Socialists reject what is perceived as “an economy on the backs of the least privileged 10-15% of the population and on the disabled”.

On the side of the Liberals, it is recalled that the minimum pension has already increased sharply under this legislature. It was 1,292 euros net in 2020 and it will reach 1,606 euros net, without even applying the fourth installment. That is an increase of 314 euros. “The left wing is stuck on cutting some spending. We want to make efforts in receipts, but we have to meet somewhere. We can only go one way. If we apply the 4th installment, it will be 27 euros more per person. Failing to do so will bring in more than 800 million euros. If we can’t do that, we’ll have to cut health care and unemployment.”

The PS, however, seems more open to agreeing to spending cuts than the environmentalists, report several participants. “Ecolo just wants to spend, carry out new policies and have positive messages”, sighs a member of the ministerial committee. “They don’t seem to know the rules of the European Union. Which is a real problem.”

Several kerns are planned in the coming evenings to find common ground. The goal is to land on March 31.



As the Belgian government prepares for further budgetary adjustments, tensions rise between different political parties regarding spending cuts and revenue increases. While the deficit is decreasing, economists warn that it remains dangerously high and efforts must be made to bring it closer to the requirements of the Stability Pact. However, finding common ground on how to achieve this remains difficult, with the left opposing cuts to social rights and the right advocating for decreased spending. As the government works towards a resolution, the outcome of these discussions will have significant consequences for the country’s economic future.

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