Belgian stimulus measures are “small”, says Commission
The Belgian draft budget for 2022 complies with European recommendations, notes the Commission, which notes in passing their “small size” compared to the rest of the euro area.
Nothing to say at this stage: the European Commission considers that the Belgian draft budget for 2022 is “in line” with the recommendations adopted this summer by the Union. The sentence is less sharp than usual since, exceptional circumstances oblige, the said recommendations were only qualitative – without the ax of quantified objectives, therefore.
On the quality of public spending therefore, the Commission underlines the need for investments promoting growth, in particular by supporting the green and digital transition. As it happens, the measures announced in the Belgian draft budget “are in line with the recommendation, although small in size”, writes the executive, which presented this Wednesday its autumn package within the framework of the coordination of the socio-economic policies of the Union. By combining emergency and recovery measures, Belgium will mobilize less than 1.5% of its GDP in 2022, one of the lowest levels in the euro zone, well below the average.
But the mention of this “small size” is purely factual, we are told at the Commission – do not see it as any call for Belgium to take additional measures at this stage. The kingdom is one of the five countries in the euro zone considered to be “with a high level of debt” (along with France, Greece, Italy and Spain), which the Commission calls for maintaining a “prudent” budgetary policy to ensure the sustainability of public finances medium term. And it is one of the only countries (this time with Estonia, Lithuania and Malta) to forecast an increase in its debt ratio in 2022.
“Stay agile”
“Belgium is invited to regularly review the use, effectiveness and adequacy of support measures, and to stand ready to adapt as necessary to changing circumstances.”
Taking into account the evolution of the recovery, “Belgium is invited to regularly review the use, effectiveness and adequacy of support measures, and to be ready to use the adapter if necessary under changing circumstances, ”notes the Commission.
At the euro zone level, the Commission generally urges states to keep nationally financed public investments – the roughly € 800 billion from the European recovery and resilience plan is a good boost, not a mechanism of substitution . And their request to limit the growth of their current spending – to free up space, precisely, for investment.
For the euro zone as a whole, the Commission calls for maintaining in 2022 “a budgetary stance of moderate support”, and to remain “agile” in order to be able to react when pandemic risks re-emerge.