Buitensporigtekortprocedure België onder verscherpt EU-toezicht (en)

COUNCIL OF THE EUROPEAN UNION

Luxembourg, 21 June 2013

PRESSE 268

Council steps up excessive deficit procedure for Belgium

The Council today¹ stepped up the excessive deficit procedure for Belgium, adopting decisions:

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  establishing that Belgium's response to the recommendation it issued in December 2009 has been insufficient; and

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  giving notice to Belgium⁴ to correct its excessive deficit in 2013 and setting out corrective measures to be taken

Belgium did not put an end to its excessive deficit in 2012 as required by the Council when it opened the procedure in December 2009

The Council had called for an average annual fiscal effort of 0.75% of GDP over the 2010-12 period, and it initially found, in July 2010, that Belgium had taken effective action. However, Belgium subsequently failed to take advantage of relatively favourable times to reduce its deficit in the manner recommended by the Council

In December 2011, the newly-constituted Belgian government agreed on a draft budget for 2012 and in January 2012 the Commission estimated that the deficit would reach 2.9% of GDP that year

However, a new assessment by the Commission shows that the 2012 deficit amounted to 3.9% of GDP. This was partly due to the recapitalisation of the Dexia banking group at the end of 2012, which had an impact of 0.8% of GDP on the government deficit. But even without this operation, the 2012 deadline would have been missed

¹ At a meeting of the Economic and Financial Affairs Council

Under article 126(8) of the Treaty on the Functioning of the European Union

³ Under TFEU article 126(7)

⁴ Under TFEU article 126(9)

Belgium's average annual fiscal effort since 2010 is estimated at 0.3% of GDP, significantly below the 0.75% of GDP recommended by the Council. After correction for the effects of revised potential output growth and revenue developments, the adjusted average fiscal effort is less than half of the recommended effort

The Council calls on Belgium to reduce its headline deficit to 2.7% of GDP in 2013, consistent with an improvement in the structural balance of 1% of GDP in 2013. It requires Belgium to fully implement consolidation measures foreseen in its 2013 budget, as well as additional measures of a structural nature to achieve the recommended structural effort for this year

The Council requires Belgium to stand ready to adopt further measures if necessary, to submit a report to the Commission by 21 September on measures taken, and further quarterly reports progress made. It furthermore calls on Belgium to report by 31 December on measures taken to ensure that budgetary targets are binding at both federal and sub-federal levels