Fiscal Consolidation in Federal Belgium

This article analyzes fiscal consolidation policy in federal Belgium in the period 2009-2014, until the initial 2014 budget. It relies on documentary analysis and interviews to examine the intensity, content and decisionmaking process of this policy. Explanations for this particular fiscal consolidation policy are looked for in the macro-economic context, the political-administrative system, and external influences. We find generally modest budget cutbacks punctuated by an exceptionally significant budget exercise. This pattern is best explained by the tensions enclosed in the Belgian political-administration, generating policy continuity, and by the external pressure, that allowed policymakers to punctually overcome these tensions.status: publishe