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Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is plausible. In comparison to the Commission services 2013 spring forecast, which projects GDP growth to be flat in 2013 and to increase to 1,2 % in 2014, it is slightly more optimistic (projecting 0,2 % and 1,5 %, respectively). Since 2010, and particularly in 2012, Belgium has implemented consolidation measures and, also in 2012, it introduced structural reforms in the pension system, the unemployment benefit system and product markets. However, the fiscal effort was not sufficient to be in line with the Council Recommendation of 2 December 2009 to end the excessive deficit situation. Also in light of the recapitalisation of the banking group Dexia, which had a negative impact of 0,8 % of GDP on the deficit outcome, and the worse than expected economic developments in the second half of 2012, the 2012 deadline for correction of the excessive deficit has been missed. Due to this, it is now foreseen that the deficit will be brought below the 3 % of GDP Treaty reference value as of 2013. The objective of the budgetary strategy outlined in the Stability Programme is to reach a balanced budget in structural terms by 2015 and to achieve the medium-term objective (MTO) in 2016. The Stability Programme has changed the MTO from a surplus of 0,5 % to 0,75 % of GDP. The new MTO is in line with the requirements of the Stability and Growth Pact. The Stability Programme is compatible with the new excessive deficit procedure deadline of 2013, but according to the Commission services 2013 spring forecast the safety margin against breaching the 3 % of GDP Treaty reference value is narrow, with a deficit projected at 2,9 % of GDP in 2013. The planned annual progress towards the MTO, which is projected to be reached by 2016, is higher than 0,5 % of GDP (in structural terms). No consolidation measures have been specified beyond 2013. According to the information provided in the Stability Programme, the growth rate of government expenditure, net of discretionary revenue measures, over 2014-2016 is expected to contribute to an annual structural adjustment towards the MTO by 0,5 % of GDP. According to the Stability Programme, the debt ratio will peak at 100 % of GDP in 2013 and will decline gradually to 93 % of GDP by 2016. From 2014 to 2016, Belgium can be expected to be in a transitional period regarding compliance with the debt criterion. According to the plans, the debt benchmark will be met at the end of the transitional period. Based on the Commission services 2013 spring forecast, which projects the debt ratio to reach 101,4 % in 2013 and to rise further to 102,1 % of GDP in 2014 under a no-policy-change assumption, the transition towards the debt reduction rule will not be respected in 2014, which indicates that progress towards the MTO is not sufficient. The Stability Programme does not explain how the planned adjustment will be shared between the different layers of government, an issue also addressed in last year’s Country Specific Recommendation. In addition to a rules-based multi-annual framework for general government, it is necessary to design and agree on explicit coordination arrangements to secure and enforce more robust, automatic commitments from the regions, communities and local authorities, in order to meet budgetary targets.