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Belgium’s Budget Crunch and the Fiscal Pressures Facing Europe

Belgium’s new government under Prime Minister Bart De Wever is entering another grueling round of fiscal negotiations, searching for at least €6.7 billion in savings to close a yawning budget gap and meet European commitments. Though a formal assessment isn’t due until July 6, the government already knows significant interventions will be required. The situation mirrors broader fiscal strains across Europe, where governments are juggling defense spending, energy transitions, and post-pandemic debt.

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