Belgium to Cut Welfare, Borrow €4 Billion Under Easter Deal to Meet NATO Target, Pledges €1 Billion Ukraine Aid

Belgium is taking steps to meet NATO's defense spending target of 2% of GDP this year, as confirmed by Budget Minister Vincent Van Peteghem. The government plans to increase borrowing and implement cuts to the welfare and social security systems to finance the additional defense expenditure, which is estimated at just under €4 billion for this year and more than €17 billion through 2029. The recent Easter agreement by the government includes measures such as asset sales and creative accounting, including classifying roads and bridges as military infrastructure, as well as considering taxing frozen Russian assets. Of the €4 billion needed this year, €2 billion is not yet compensated. The government has also recently pledged €1 billion in military aid and €150 million in financial aid to Ukraine. Political parties have expressed differing views on how the financial burden should be shared. Vooruit has called for an equitable distribution of the effort, with contributions from those with greater means, while Open Vld has warned of the risk of new taxes. Opposition voices have raised concerns about the impact on the middle class. There are concerns that Belgium may struggle to meet any further increases in NATO's defense spending targets, particularly if additional pressure is exerted by the United States.