Belgium’s Budget Deadlock Puts New Spending on Hold

The dispute reflects sharp differences among the coalition partners: Flemish nationalist N-VA, Christian Democrats and Socialists, alongside French-speaking centrist Les Engagés and the right-wing MR, or Mouvement Réformateur. De Wever’s proposed savings are intended to meet European Union requirements while leaving a margin, in line with his support for budget discipline.

Healthcare is a central fault line. Les Engagés and the Socialists regard cuts to areas such as hospitals and reimbursement for medical care as unacceptable, while other partners see them as potential sources of substantial savings. The parties are also divided over VAT. De Wever has proposed increasing the standard rate by 1 percentage point and raising the food rate from 6% to 9%, measures the source says face opposition even on the right.

If the coalition does not agree by the deadline, Belgium could use “provisional twelfths” ("douzièmes provisoires" in French): repeating the current year’s budget month by month, with one-twelfth available at a time. The arrangement covers previously approved current spending, but blocks new investment and expenditure. A ministry hoping to start a programme in January, for example, would have to wait for funding.

The stopgap would also delay savings intended to bring Belgium’s deficit back to an acceptable level under EU budget rules. De Wever has warned that the government will have to use the mechanism if no agreement is reached. Belgium relied on provisional twelfths earlier in 2026, until March.