Bart De Wever ramps up pressure on Belgian budget amid party deadlock

In a closed-door meeting, Bart De Wever brought together the governor of the National Bank and the director of the debt agency to underline the rapid deterioration of Belgium’s public finances. He echoed the prime minister’s warning that debt is snowballing faster than anticipated, potentially reaching a critical point by 2028 or 2029. To address the looming budget gap, De Wever floated a compromise: a partial VAT increase to 22% balanced by a zero-rate on basic goods, alongside an accelerated tax reform and lower payroll taxes.

The MR’s staunch opposition to any VAT hike and Vooruit’s recent confrontational tactics have strained relations, prompting doubts within the prime minister’s circle about MR’s understanding of the fiscal emergency. The political showdown is set to intensify as the prime minister prepares a parliamentary address within days.