European Commission and REFOR 3 June 2026, COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Belgium Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Belgium

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This European Commission Staff Working Document constitutes the 2026 Country Report for Belgium, accompanying a Council Recommendation on Belgium's economic, social, employment, structural, and budgetary policies pursuant to the EU economic governance framework. The report assesses Belgium's compliance with country-specific recommendations (CSRs), its medium-term fiscal structural plan for 2025–2029 under the Excessive Deficit Procedure, and progress across fiscal consolidation, labour market reform, energy transition, innovation, education, and regional cohesion. The Commission identifies persistent structural challenges including a government deficit of 5.2% of GDP, public debt projected to reach 112.8% of GDP by 2027, high labour taxation, low employment rates among disadvantaged groups, and insufficient decarbonisation progress, while noting reforms such as the March 2026 pension reform draft law and the inter-federal budgetary coordination agreement.AI