Belgium budget talks weigh VAT hike after failed reform; MR resists

Belgian federal budget negotiations aim for €10 billion in savings, with a VAT increase under consideration after last winter's failed reform, which PM Bart De Wever called a 'stinking camel.' The MR party has resisted the measure, crystallizing weekend talks. Economist Philippe Defeyt argues direct transfers would be simpler and more effective than tax cuts for boosting low-income purchasing power.