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Belgian Federal Government Struggles to Finalize Budget

The Belgian government faces major obstacles in reaching agreement on the 2024-2029 budget, highlighting both internal divisions and mounting economic challenges.

Belgium’s federal government is facing significant challenges as it attempts to piece together its budget for the 2024-2029 period. This year, the traditional general policy statement, usually held on the second Tuesday of October, has been postponed by a week, underscoring deep divisions and ongoing negotiations within the ruling coalition. The delay reflects mounting difficulties in securing agreement on cost-saving measures totaling around 10 billion euros.

Prime Minister Alexander De Croo is unable to present the government’s program and budget to Parliament as planned due to continuous disagreements among coalition partners. Deputy Prime Minister David Clarinval confirmed early Monday that talks have made little progress, particularly around tough spending cuts. The lack of consensus jeopardizes not only the budget but also the government’s credibility during a critical period.

The budget process itself has faced hefty criticism for its lack of urgency and transparency. Both opposition figures and some government members, such as Open VLD lawmaker Alexia Bertrand, have spoken out about the delayed start to crucial negotiations. Foreign Minister Maxime Prévot announced that the Prime Minister will not deliver the traditional ‘State of the Union’ address this week, a move widely seen as emblematic of the broader challenges and stalled decision-making facing the government.

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