According to economist Kevin Spiritus, Associate Professor at Erasmus School of Economics, Belgium’s budget crisis is largely the result of the way the country’s budget process is organised. In an interview with the leading Belgian newspaper De Morgen, he describes the approach of the De Wever government as ‘amateurish’ and ‘no longer sustainable’.
Spiritus, who previously served as a member of the expert group led by Professor Mark Delanote on fiscal reform, argues that Belgian politics relies too heavily on last-minute agreements and late-night negotiations. ‘Both the preparatory policy work and the political decision-making are unprofessional. It is impossible for good policy to emerge from this,’ he states.
The Netherlands as an example
The economist compares Belgium’s approach with that of the Netherlands, where the budget process is constitutionally defined and must be completed by September. ‘In the Netherlands, all potential savings are calculated months in advance. On the day the government presents its budget agreement, there is already a detailed, hundred-page document explaining the effect of every measure. In Belgium, we get a single A4 sheet and have to wait weeks for further details,’ says Spiritus.
‘Panic over the budget deficit is exaggerated’
Prime Minister Bart De Wever (N-VA) warned in recent days that Belgium is ‘on the brink of the abyss’, facing a budget deficit of 4.9 per cent in 2025, potentially rising to 6 per cent by 2029. Spiritus acknowledges that the situation is serious but believes it is exaggerated to call it a crisis. ‘This is a manageable exercise. The real political question is simply how we distribute the effort.’
According to Spiritus, a fiscal adjustment of €8.2 billion would suffice to meet European targets by 2029. However, he points out that Belgium’s high public debt makes the country vulnerable if financial markets become nervous again, as seen in France.
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You can download the full interview with Kevin Spiritus in De Morgen above (In Dutch). For more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl, mobile: +31 6 53 641 846.
