The International Monetary Fund published its 2025 Article IV consultation materials for Belgium, assessing that the economy has remained resilient through recent turbulence but continues to face significant vulnerabilities. The IMF highlighted large structural fiscal deficits, elevated and rising public debt, and a weak external position, arguing that reducing imbalances will require deep reforms. The assessment points to headwinds from long-term spending pressures and a more uncertain external environment. It notes that the federal coalition government has launched pension, tax, and labor market reforms while seeking to curb deficits and public debt, but that implementation is complicated by labor union pushback, internal coalition differences, and insufficient coordination between regional and federal governments.
International Monetary Fund 2026-02-23
International Monetary Fund concludes Belgium Article IV with call for deep reforms to tackle structural fiscal deficits and rising public debt
The IMF's 2025 Article IV consultation for Belgium highlights economic resilience but underscores vulnerabilities like structural fiscal deficits and rising public debt. It calls for deep reforms to address these issues, noting challenges from long-term spending pressures and an uncertain external environment. Despite government efforts on pension, tax, and labor market reforms, implementation faces obstacles from labor union resistance and coordination issues between regional and federal governments.