Speaking on Thursday, the Federal Finance Minister Vincent Van Peteghem (Flemish Christian democrat) warned that failing to make decisive progress in the federal budget talks will derail economic growth and stall investment. Speaking in the Federal Parliament, Mr Van Peterghem said that the ongoing budget negotiations are “complex and far-reaching” and stressed that “what Europe demands of us will be the bare minimum”.
Federal Finance Minister warns of the economic consequences of failing to make progress on the budget
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As the Belgian Prime Minister Bart De Wever (Flemish nationalist) was attending a European Summit, it was Mr Van Petergem that answered MPs questions about the stalled budget negotiations. The Finance Minister said that the current budgetary efforts are weighed down by "an inheritance for which we all share responsibility". He also said that interest payments on public debt could account for more as much as 40% within a few years.
Mr Van Peteghem told MPs that the governments ultimate aim is “clear and not up for debate". He also warned that meeting the EU's expenditure target would take time.
“We must do what is necessary, not what is easy,” Taking difficult decisions now will prevent an erosion of purchasing power and prosperity later, the Finance Minister said. If no action is taken Belgium risks becoming “a society where everyone is left to fend for themselves”.