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Belgium facing recommendations
On 2 December 2009, for the first time since the
start of Economic and Monetary Union, Belgium was subjected to an
excessive deficit procedure, in common with 22 other Member States at
present.
In that context, the European Council of 2
December 2009 recommended that the Belgian government should put an end
to the excessive deficit procedure in 2012 at the latest by making a
structural effort averaging 0.75 % of GDP per annum. The European
Council also advocated the earliest possible implementation of the
measures laid down in the 2010/2011 multi-annual budget.
In January 2010, Belgium submitted a stability
programme under which the excessive deficit procedure would end in 2012
and public finances would be restored to balance in 2015. At the July
2010 European Council, the Heads of State and Government considered that
Belgium had acted in accordance with the recommendations (see annex).
Since then, the Belgian government considers that
it has continued to produce a good response to the European
recommendations in view of the fact that:
· The budget outcomes for 2010 are
considerably better than the targets set in the 2010 stability
programme, with a general government deficit of 4.1 % of GDP,
compared to the original figure set at 4.8 %. Belgium is thus a year
ahead of the original targets.
· In consequence, and taking account of the
active management of the public debt, Belgium recorded the smallest
rise in the public debt in the euro area (on the basis of the
currently available data). The public debt came to 96.8 % of GDP in
2010, compared to 96.2 % of GDP in 2009.
· The improvement in the structural balance
in 2010 ranged between 0.8 % of GDP and 1.3 % of GDP, depending on
the methodology used.
· Moreover, the 2011 budget provides for a
deficit of 3.6 % of GDP for general government as a whole, or 0.5 %
of GDP less than under the 2010 stability programme. That target
permits stabilisation of the endogenous debt ratio. It should be
noted that the 2011 budget was based on a deficit of 4.5 % of GDP in
2010. It is therefore possible that the 2011 budget outcomes may
also outperform the target.
· The government is steadfastly committed to satisfying the
conditions permitting the excessive deficit procedure to end in 2012
at the latest.
Chart 2: Financing balance and public debt
(In % of GDP)
Sources : 2010 stability programme, National
Accounts Institute (2011)
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