Belgium

The 2026 Article IV Consultation discusses that Belgian economy has been resilient to successive shocks but remains scarred through large structural fiscal deficits, a rising public debt, deteriorated price competitiveness, and a weaker external position. Downside risks could weigh on the outlook, mainly from external demand, geopolitical and trade tensions, and prolonged uncertainty. Further fiscal consolidation is needed to lower deficits and debt vulnerabilities and restore external balances. Fiscal reforms should continue, focusing on reducing current spending, improving public investment and social spending efficiency, reducing tax expenditure, and ensuring that regions and communities contribute to fiscal adjustment. Continued domestic structural reforms and efforts with EU partners to deepen the single market, advancing the savings and investment union, and integrating the energy market are vital to boost employment despite aging, raise productivity and competitiveness, and soften the impact of fiscal consolidation.