Belgian government Faces Budget Deadline as CD&V Pushes for Targeted VAT Reform
Brussels – With just 40 days remaining to reach an agreement on the 2026 federal budget and fiscal trajectory, BelgiumS governing coalition remains locked in tense negotiations. Prime Minister Bart De Wever set the deadline, but no meetings of the select committee have been held since talks stalled on November 6.
CD&V is now urging a swift resumption of discussions and a focused agenda to secure a deal. The party acknowledges the current pause is intended to de-escalate tensions, but insists time is of the essence. According to Sammy Mahdi of CD&V, the government must identify an additional €10 billion in savings to remain on track for its 2030 goals, ideally reaching €13-14 billion.
A key point of contention remains revenue generation, with a VAT increase under consideration. While CD&V supports the concept, Mahdi stressed the party opposes a uniform rate hike. “If this measure can be applied to luxury products, reductions should also be considered to avoid an increase in the cost of shopping carts,” he stated.
CD&V is also advocating for the elimination of what it deems ineffective business subsidies, citing the “first commitment” aid – costing €500 million annually – as an example, noting “all experts agree that it is useless.” The party also wants to crack down on abuses related to management companies.
regarding cost-of-living concerns, Mahdi firmly stated that an index jump is “non-negotiable” for CD&V, arguing it would be detrimental to the budget and disproportionately impact working-class Flemings. It remains unclear whether this refers to a full index skip or a previously discussed “lite” version.
To secure the support of the MR party, Mahdi believes a “sufficiently broad” agreement is necessary, recommending the implementation of a “growth plan.”
Despite the challenges, N-VA group leader Axel Ronse, speaking to De Zondag, maintained a commitment to finding a solution, stating, “let’s be clear: we are determined to find an agreement. We are not considering new elections.” However, he conceded that failure to reach a deal by christmas could necessitate calling for new elections, adding, “we might as well stop. it will then be up to the voters to decide.”
