Mission impossible for Prime Minister De Wever: how do you find 4.5 billion euros with a blood-red budget? | De Morgen

Funding Belgium's Military Modernization

The article discusses the Belgian government's struggle to finance a substantial increase in defense spending, aiming to reach 2% of GDP by the end of the year and 2.3% by 2029. This challenge is complicated by a 'blood-red budget' and differing opinions within the coalition government.

Proposed Solutions and Debates

Various options are explored, including:

• European Union Budgetary Flexibility: Exploiting potential temporary easing of budget rules to avoid further austerity.
• Domestic Austerity Measures: The MR party advocates for additional cuts, targeting healthcare and development aid, a proposal met with resistance from other coalition partners.
• Revenue Generation: Proposals include increasing taxes and re-classifying certain government spending as defense-related.
• Sale of State Assets: Selling state holdings in companies like BNP Paribas is considered, but this is a one-time solution.
• Utilizing Frozen Russian Assets: Belgium aims to use some of the income generated from interest on frozen Russian assets held by Euroclear, but this is precarious due to potential future developments in the Russo-Ukrainian conflict.
• Sale of Gold Reserves: Selling a portion of Belgium's gold reserves is also being considered, but this would require approval from the National Bank of Belgium.

These proposals highlight a tense political climate and a need for creative solutions to address the substantial budgetary deficit in defense spending.