Belgian Government Reaches Long-Awaited Budget Deal After Months of Tense Negotiations

After months of negotiations, the Belgian government has finally reached a budget deal.

Prime Minister Bart De Wever announced on Monday that, following a long stretch of tense discussions, the government has agreed on its budget framework for the coming year.

Earlier this month, De Wever had set a Christmas deadline for his fractured five-party coalition, which had struggled to find common ground on how to stabilize public finances.

The breakthrough came after marathon talks that began on Sunday morning and continued through Monday.

According to a report in the financial daily De Tijd, the agreement includes higher taxes on share purchases, airline tickets, and natural gas, as well as the introduction of a new tax on banks.

Combined with cuts to government spending, the measures are expected to reduce Belgium’s public deficit by €9.2 billion ($10.6 billion) by 2029.

Belgium—the euro zone’s sixth-largest economy—is currently facing a budget deficit projected to reach 4.5% of GDP this year, while national debt is set to climb to 104.7% of GDP, far above the EU’s recommended limits, according to the central bank.

However, the deal will not prevent the three-day national strike beginning Monday, called in opposition to previously announced pension reforms.

Significant disruptions to train and air travel are expected. Last week, Brussels Airport cancelled all flights scheduled for Wednesday after security and ground-handling staff confirmed they would join the strike.

($1 = €0.8680)