The Council of the European Union has adopted a recommendation on the economic, social, employment, structural and budgetary policies of Belgium, urging the country to respect maximum net expenditure growth rates and finalise several delayed reforms by the end of 2026. The recommendation, published on 22 June 2026, sets out a fiscal path requiring Belgium to limit net expenditure growth to 2.5% in 2026 and 2027, and 2.1% in 2028 and 2029, with cumulative growth from a 2024 base reaching 13.4% by 2029. The excessive deficit procedure against Belgium has been held in abeyance since 3 June 2026.
The recommendation builds on the Council's activation of the national escape clause on 8 July 2025, which allows Belgium to deviate from the expenditure path during 2025-2028 to accommodate higher defence spending. Belgium faces significant fiscal sustainability risks, with public debt rising from 103.9% of GDP at end-2024 to a projected 112.8% by end-2027, and deficits remaining above 5% of GDP through 2027. The Council notes that several key reforms are overdue: the pension reform, originally due in Q4-2025, is now expected in 2026; tax reforms due in Q1-2026 are partly implemented, with finalisation expected by July 2026; and legislation on budgetary coordination between federal and regional governments, due in Q4-2025, must be enacted by end-2026.
On energy, the Council expects untargeted fuel-cost compensation and a targeted social transfer for heating costs to end on 1 July 2026. For cohesion policy, Belgium must accelerate implementation of the Just Transition Fund, with resources to be deployed by end-2026, and rapidly use new investments from the mid-term review. The recommendation impacts multiple stakeholders: the Belgian federal and regional governments face tight fiscal constraints and reform deadlines; taxpayers may see continued fiscal consolidation; businesses could benefit from improved budgetary coordination and reduced uncertainty; and households receiving energy support will see those measures phased out by mid-2026. The Council's recommendation is non-binding but carries political weight as part of the European Semester process, and the Commission will monitor Belgium's compliance in subsequent assessments.