The Belgian federal government failed to reach a budget agreement following Saturday's kern meeting. As reported by L'Echo, the French-speaking liberal party, MR, remained adamant against any increase in value-added tax (VAT).
No budget agreement after kern meeting
The restricted cabinet, comprising the Prime Minister and deputy prime ministers, convened on Saturday to discuss the federal budget. The meeting concluded without a breakthrough, primarily due to the MR's unwavering stance on VAT rates. This indicates that negotiations on Belgium's financial plan must continue.
MR's position on VAT
According to L'Echo, the Mouvement Réformateur (MR) maintains its firm opposition to any VAT increase. This position represents a significant obstacle to finalizing a budget, as VAT adjustments are frequently considered a means to boost government revenue. The lack of consensus on this specific point is preventing a comprehensive budget agreement for the federal government.
Next steps in budget negotiations
The failure to reach an agreement obliges the federal government to continue negotiations. Deadlines for submitting a balanced budget, both nationally and at the European level, are approaching. The parties will need to reconvene to find a compromise that ensures Belgium's financial stability without compromising the positions of the various coalition partners, such as the MR. Further discussions are expected in the coming days.
