OECD warns Belgium once again to get its budget in order

The OECD expresses ongoing concern about Belgium's budget deficit and rising government debt, urging the country to improve its public finances. Despite economic shocks, Belgium's economy remains resilient, but geopolitical tensions and rising energy prices threaten growth. The OECD predicts that by 2025, government debt will reach 108% of GDP and the budget deficit will be 5.2%. To stabilize debt at 110% by 2035, Belgium needs additional efforts equivalent to 3.5% of GDP. The OECD recommends limiting spending, reforming social security, healthcare, and education, and addressing fiscal exceptions. It also emphasizes the need for cost efficiency in healthcare and stronger climate policies. Lastly, to enhance competitiveness, Belgium should adopt a more flexible wage system and reduce administrative burdens on businesses.