BELGIUM CENTRAL BANK WARNS “THE MONEY HAS RUN OUT” AS ENERGY RISKS MOUNT
Pierre Wunsch, Governor of the National Bank of Belgium, delivered a stark warning: Belgium no longer has the financial capacity to cushion another energy shock.
After deploying massive support during the 2022 crisis, fiscal space is now exhausted.
Rising deficits, higher costs, and fragile public finances leave “very limited room for maneuver.”
Wunsch made clear that broad, government-funded relief is no longer viable.
Future support would require difficult tradeoffs, including cutting business tax breaks rather than increasing taxes on individuals.
The warning comes as geopolitical tensions rise, particularly around Iran and the broader Middle East.
Wunsch cautioned that a prolonged conflict could slow global growth and push Belgium into a technical recession.
“If the war continues… it would only be a matter of time before the markets react,” he told lawmakers.
The fiscal outlook is already strained. Belgium must find at least €5B to balance its 2026 budget, with Prime Minister Bart De Wever rejecting further large-scale aid after previous “helicopter money” policies.
