The Belgian Foreign Minister and Francophone centrist Deputy Prime Minister Maxime Prévot has told VRT News that that a balance needs to be struck between spending cuts and generating new revenue. Speaking on VRT Radio 1’s morning news and current affairs programme ‘De ochtend on Friday, Mr Prévot said that it is impossible to close the budget deficit adequately without taking a "balanced approach" to reducing spending and generating new revenue.
Deputy PM says that a balance needs to be struck between spending cuts and higher taxes
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On Thursday, the Belgian Prime Minister Bart De Wever (Flemish nationalist) extended the deadline for reaching an agreement on the Federal budget to Christmas. This followed a visit to the King at the Royal Palace. There had been speculation that he might have used Thursday's visit to the King to offer the his government's resignation.
However, rather than resigning, Mr De Wever decided to put back the deadline for the conclusion of an agreement on the federal budget once more. Speaking in the Federal Parliament on Thursday afternoon Prime Minister De Wever said that he had told the King “Sire, give me fifty days". He then went to say that there would be no further extensions to the deadline.
Higher taxes versus sending cuts
Several politicians that are involved in the budget negotiations say that the Francophone liberal leader Georges-Louis Bouchez is the biggest obstacle to reaching a deal. The Francophone liberals are adamant that the money that needs to be found to bring down the budget deficit and reduce public debt should come from spending cuts rather than from increased taxation.
On Friday morning Mr Prévot told VRT News that he is angry with Mr Bouchez and was "fed up" with the way Francophone leader’s "performances". Nevertheless, the Belgian Foreign Minister confirmed that the Francophone liberals remain an important partner. "I am convinced that Mr Bouchez is a partner that wants to find a solution. He has said so himself”.
Rise in VAT
Mr Prévot pointed out that the federal coalition agreement already includes a 23-billion-euro restructuring plan that is almost entirely made up of spending cuts. "Another 10 billion euros is now needed to get Belgium back on track. This cannot be done by reducing expenditure alone."
Mr Prévot, says that increasing VAT is one option and while politicians don’t like new taxes or increasing the level of existing taxes "at some point you have to be realistic".
Speaking on Thursday, Mr Bouchez that his party had put forward "alternatives" to tax increases during the negotiations. However, Mr Prévot said that these proposals were "not credible" to the 4 other parties around the table. He went on to says that the Francophone liberals’ proposals included cuts to expenditure on health and other vital public services. "Look at the situation of the police and the judiciary. The are areas in which we must absolutely invest”.