Belgium's nod for extra austerity measures to cap budget deficit
March 12, 2012, Monday
|
Print Edition
Print Edition
THE Belgian government has approved an additional 2.5 billion euros (US$3.3 billion) in austerity measures this year to bring the budget deficit within the European Union limit as economic growth slows.
At a meeting that ended early yesterday, ministers agreed to save 1.82 billion euros and create a budget reserve of 650 million euros, Premier Elio Di Rupo said in a statement. The extra austerity goes above the 2 billion euros recommended by the country's budget-monitoring panel as the government took into account a "possibly worse" economic situation, he said.
"The government wants to protect people and companies against speculation and the worsening of living conditions," Di Rupo said. "We have also chosen to be cautious."
The measures will enable Belgium to reach a deficit goal of 2.8 percent of gross domestic product in 2012, below the EU limit of 3 percent, he said.
Belgium's budget for 2012 was drafted on the assumption that the economy would grow 0.8 percent this year. The panel, which assumed annual growth of 0.1 percent, suggested earlier this year savings of 1.5 billion euros and a buffer of 500 million euros.
The central bank in mid-February forecast an economic contraction in 2012 of 0.1 percent.
"The difference between plus 0.1 and minus 0.1 percent has an impact of 350 million euros in the fiscal balance," Di Rupo said.
At a meeting that ended early yesterday, ministers agreed to save 1.82 billion euros and create a budget reserve of 650 million euros, Premier Elio Di Rupo said in a statement. The extra austerity goes above the 2 billion euros recommended by the country's budget-monitoring panel as the government took into account a "possibly worse" economic situation, he said.
"The government wants to protect people and companies against speculation and the worsening of living conditions," Di Rupo said. "We have also chosen to be cautious."
The measures will enable Belgium to reach a deficit goal of 2.8 percent of gross domestic product in 2012, below the EU limit of 3 percent, he said.
Belgium's budget for 2012 was drafted on the assumption that the economy would grow 0.8 percent this year. The panel, which assumed annual growth of 0.1 percent, suggested earlier this year savings of 1.5 billion euros and a buffer of 500 million euros.
The central bank in mid-February forecast an economic contraction in 2012 of 0.1 percent.
"The difference between plus 0.1 and minus 0.1 percent has an impact of 350 million euros in the fiscal balance," Di Rupo said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
