Belgian businesses are calling on the federal government to make economic growth and competitiveness central to the next round of budget negotiations, warning that weak

expansion could make it increasingly difficult to tackle the country’s fiscal and social challenges.

With formal budget talks due to begin shortly, Flemish employers’ organisation Voka has set out a series of priorities for the government. Voka chief executive Frank Beckx said every decision taken during the negotiations should be tested against its potential impact on business productivity, investment and international competitiveness.

“We request that every measure in the upcoming budget formulation be assessed for its impact on the competitiveness and productivity of businesses,” Beckx said.

The government’s budget discussions come after the federal core cabinet agreed last month to target a €10 billion correction by 2029, the final year of the current legislative term. Political negotiations are expected to produce an agreement by the middle of October.

Businesses warn of prolonged weak growth

Voka argues that fiscal consolidation cannot be separated from the health of the wider economy. Belgium is currently experiencing subdued economic growth, with expansion of around 0.5% considered far too weak to generate the additional resources needed to address mounting public spending pressures.

The employers’ group says independent economic experts have repeatedly warned that the government’s budget objectives will be difficult to achieve if growth remains close to current levels.

For Voka, stimulating investment and strengthening the productive capacity of the economy should therefore be treated as part of the solution to Belgium’s budget problems rather than as a secondary consideration.

The organisation’s concerns are reinforced by a survey of around 600 companies. More than half of respondents described the current business climate negatively, while many reported that incoming orders remained below normal levels.

Only 9% said they expected conditions to improve over the next year.

Labour and energy costs remain major concerns

Flemish companies are particularly worried about their ability to compete internationally. Voka says high labour costs and persistently elevated energy prices are placing continued pressure on businesses, particularly those operating in sectors exposed to international competition.

Weak demand is another significant problem, while geopolitical uncertainty is making companies more cautious about future investment.

Voka warns that this combination could have longer-term consequences if companies postpone investment, scale back innovation or decide to abandon planned projects altogether.

“When businesses delay or even cancel their investments and innovation efforts, this country faces an even greater problem,” the organisation argues.

Reduced business investment could ultimately weaken productivity and economic growth further, creating a cycle in which slower expansion makes it harder for the government to improve public finances.

Voka calls for fewer taxes and less red tape

The employers’ organisation has urged the government to avoid introducing additional taxes on businesses as part of the budget package. Instead, it wants policymakers to concentrate on measures that make Belgium a more attractive location for investment and industrial activity.

One of its key demands is a long-term strategy to prevent further industrial decline and encourage companies to maintain production and investment in Belgium.

Voka is also calling for a reduction in administrative burdens, arguing that excessive regulation creates additional costs for companies and diverts resources away from investment and innovation.

The organisation’s broader message is that fiscal policy should support, rather than undermine, the economy’s capacity to grow.

As the federal government prepares for difficult negotiations over how to close the budget gap, business leaders are pressing politicians to ensure that efforts to restore public finances do not come at the expense of competitiveness, investment and future economic growth.