Several weeks ago the European Commission announced that Belgium’s structural budget deficit is considerably higher than what the Federal Government has said.
The European Commission says that it is 1.3% of GDP, while Belgium’s Federal Government says that it is 0.8% of GDP. This has fueled the EU’s fears that Belgium is not reducing its structural deficit quickly enough. The European Commission has issued a warning and requested that the Belgian Government take the necessary measures to ensure “that the budget respects European rules”. Failure to do so will result in Belgium being subject to tighter scrutiny from the Commission from next spring.
In addition to Belgium, France, Portugal, Slovenia and Spain have also been issued with warnings.