Belgian government to save EUR 10 billion to maintain budget

16th September 2009, Comments 0 comments

The Belgian government has announced that it will shoulder 65% of the effort needed to shore up the budget. Belgium's regional and community authorities as well as the municipalities should take care of the remaining 35%.

The inner cabinet agreed the federal government's share on Tuesday morning.

On Wednesday representatives of the federal and devolved governments will meet.

To reach this figure the government has to save EUR 10 billion over the next three years. A decision as to how this sum will be achieved is expected in the course of the week.

Mr Van Rompuy's federal administration is seeking a balanced budget in 2015.

Next year the government will make savings worth a 0.5% of the national output. By 2011 this figure will rise to 1%.

Even greater efforts will be required after 2011.

Belgium has had to rethink its plans after the European Commission rejected its multi-year savings plan.

The government must devise a strategy showing how it will tackle the budgetary situation. It must also indicate when a balanced budget will be achieved and how the effort will be shared among Belgium's various authorities.

0 Comments To This Article