Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of Belgium and delivering a Council opinion on the 2020 Stability Programme of Belgium
Date: 2020-05-20
Institutions: European Commission, Secretariat-General
Subjects: Belgium, economic policy, economic recovery, economic reform, epidemic, infectious disease, investment, labour market, stability pact, stability programme

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   EUROPEAN COMMISSION  Brussels, 20.5.2020  COM(2020) 501 final  Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of Belgium and delivering a Council opinion on the 2020 Stability Programme of Belgium  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2020 National Reform Programme of Belgium and delivering a Council opinion 
on the 2020 Stability Programme of Belgium 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies1, and in particular Article 5(2) thereof, 

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

(2) 

On  17  December  2019,  the  Commission  adopted  the  Annual  Sustainable  Growth 
Strategy,  marking  the  start  of  the  2020  European  Semester  for  economic  policy 
coordination. It took due account of the European Pillar of Social Rights, proclaimed 
by the European Parliament, the Council and the Commission on 17 November 2017. 
On  17  December  2019,  on  the  basis  of  Regulation  (EU)  No  1176/2011,  the 
Commission  also  adopted  the  Alert  Mechanism  Report,  in  which  it  did  not  identify 
Belgium as one of the Member States for which an in-depth review would be carried 
out. On the same date, the Commission also adopted a recommendation for a Council 
recommendation on the economic policy of the euro area. 
The 2020 country report for Belgium2 was published on 26 February 2020. It assessed 
Belgium’s  progress  in  addressing  the  country-specific  recommendations  adopted  by 
the Council on 9 July 20193, the follow-up given to the recommendations adopted in 
previous years and Belgium's progress towards its national Europe 2020 targets.  

(3) 

On 11 March 2020, the World Health Organization officially declared the COVID-19 
outbreak  a  global  pandemic.  It  is  a  severe  public  health  emergency  for  citizens, 

1 
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OJ L 209, 2.8.1997, p. 1. 
SWD(2020) 500 final. 
OJ C 301, 5.9.2019, p. 117. 

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societies  and  economies.  It  is  putting  national  health  systems  under  severe  strain, 
disrupting  global  supply  chains,  causing  volatility  in  financial  markets,  triggering 
consumer  demand  shocks  and  having  negative  effects  across  various  sectors.  It  is 
threatening  people’s  jobs,  their  incomes  and  companies’  business.  It  has  delivered  a 
major  economic  shock  that  is  already  having  serious  repercussions  in  the  European 
Union. On 13 March 2020, the Commission adopted a Communication4 calling for a 
coordinated economic response to the crisis, involving all actors at national and Union 
level. 

Several  Member States have declared a state of  emergency or introduced emergency 
measures.  Any  emergency  measures  should  be  strictly  proportionate,  necessary, 
limited in time, and in line with European and international standards. They should be 
subject to democratic oversight and independent judicial review. 

On  20  March  2020,  the  Commission  adopted  a  Communication  on  the  activation  of 
the general escape clause of the Stability and Growth Pact5. The clause, as set out in 
Articles 5(1), 6(3), 9(1) and 10(3) of Regulation  (EC) 1466/97 and Articles 3(5) and 
5(2) of Regulation (EC) 1467/97, facilitates the coordination of budgetary policies in 
times  of  severe  economic  downturn.  In  its  Communication,  the  Commission  shared 
with the Council its view that, given the expected severe economic downturn resulting 
from  the COVID-19 outbreak, the  current  conditions  permit  activation of the clause. 
On  23  March  2020,  the  Ministers  of  Finance  of  the  Member  States  agreed  with  the 
assessment of the Commission. The activation of the general escape clause allows for 
a temporary departure from the adjustment path  towards the medium-term budgetary 
objective,  provided  that  this  does  not  endanger  fiscal  sustainability  in  the  medium 
term. For the corrective arm, the Council may also decide, on a recommendation from 
the Commission,  to  adopt  a revised  fiscal  trajectory. The  general  escape  clause does 
not suspend the procedures of the Stability and Growth Pact. It allows Member States 
to depart from the budgetary requirements that would normally apply while enabling 
the  Commission  and  the  Council  to  undertake  the  necessary  policy  coordination 
measures within the framework of the Pact. 

Continued  action  is  required  to  limit  and  control  the  spread  of  the  pandemic, 
strengthen  the  resilience  of  the  national  health  systems,  mitigate  the  socio-economic 
consequences through supportive measures for business and households and to ensure 
adequate  health  and  safety  conditions  at  the  workplace  with  a  view  to  resuming 
economic  activity.  The  Union  should  fully  use  the  various  tools  at  its  disposal  to 
support  Member  States’  efforts  in  those  areas.  In  parallel,  Member  States  and  the 
Union should work together to prepare the measures necessary to get back to a normal 
functioning of our societies and economies and to sustainable growth, integrating inter 
alia  the  green  transition  and  the  digital  transformation,  and  drawing  all  lessons  from 
the crisis. 

The  COVID-19  crisis  has  highlighted  the  flexibility  that  the  single  market  offers  to 
adapt  to  extraordinary  situations.  However,  in  order  to  ensure  a  swift  and  smooth 
transition to the recovery phase and the free movement of goods, services and workers, 
exceptional measures that prevent  the single market  from  functioning  normally must 
be removed as soon as they are no longer indispensable. The current crisis has shown 
the need for crisis preparedness plans in the health sector, which include in particular 
improved  purchasing  strategies,  diversified  supply  chains  and  strategic  reserves  of 

(4) 

(5) 

(6) 

(7) 

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COM(2020) 112 final. 
COM(2020) 123 final. 

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(8) 

(9) 

essential  supplies.  They  are  key  elements  for  developing  broader  crisis  preparedness 
plans. 
The  Union  legislator  has  already  amended  the  relevant  legislative  frameworks6  to 
allow  Member  States  to  mobilise  all  unused  resources  from  the  European  Structural 
and  Investment  Funds  so  they  can  address  the  exceptional  effects  of  the  COVID-19 
pandemic. Those amendments will provide additional flexibility, as well as simplified 
and streamlined procedures. To alleviate cash flow pressures, Member States can also 
benefit  from  a  100%  co-financing  rate  from  the  Union  budget  in  the  2020-2021 
accounting year. Belgium is encouraged to make full use of those possibilities to help 
the individuals and sectors most affected by the challenges. 

The  socio-economic  consequences  of  the  pandemic  are  likely  to  be  unevenly 
distributed  across  regions  because  of  different  specialisation  patterns.  This  entails  a 
substantial  risk  of  widening  inter-  and  intra-regional  disparities  within  Belgium. 
Combined  with  the  risk  of  a  temporary  unravelling  of  the  convergence  process 
between Member States, the current situation calls for targeted policy responses. 

(10)  On  30  April  2020,  Belgium  submitted  its  2020  National  Reform  Programme  and  its 
2020  Stability  Programme.  In  order  to  take  account  of  their  interlinkages,  the  two 
programmes have been assessed at the same time. 

(11)  Belgium  is  currently  in  the  preventive  arm  of  the  Stability  and  Growth  Pact  and 

subject to the debt rule.  

(12)  On  13  July  2018,  the  Council  recommended  Belgium  to  ensure  that  the  nominal 
growth  rate  of  net  primary  government  expenditure7  does  not  exceed  1,8%  in  2019, 
corresponding  to  an  annual  structural  adjustment  of  0,6%  of  GDP.  As  Belgium  was 
assessed to  qualify for the requested temporary  deviation  of 0,5% of GDP  under the 
structural  reform  clause,  the  required  structural  adjustment  for  2019  was  reduced  to 
0,1% of GDP, corresponding to a nominal growth rate of net primary expenditure that 
does  not  exceed  2,8%  in  2019.  The  Commission’s  overall  assessment  confirms  a 
significant  deviation  from  the  recommended  adjustment  path  towards  the  medium-
term  budgetary  objective  in  2019  and  over  2018  and  2019  taken  together.  This  is  a 
relevant factor in the Commission report prepared in accordance with Article 126(3) of 
the Treaty assessing Belgium’s compliance with the debt criterion in 2019.  

(13) 

In  its  2020  Stability  Programme,  the  government  plans  the  headline  balance  to 
deteriorate from a deficit of 1,9% of GDP in 2019 to a deficit of 7,5% of GDP in 2020. 
After decreasing to 98,6% of GDP in 2019, the general government debt-to-GDP ratio 
is  expected  to  increase  to  around  115%  in  2020  according  to  the  2020  Stability 

6 
Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending 
Regulations  (EU)  No  1301/2013,  (EU)  No  1303/2013  and  (EU)  No  508/2014  as  regards  specific  measures  to 
mobilise  investments  in  the  healthcare  systems  of  Member  States  and  in  other  sectors  of  their  economies  in 
response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L 99, 31.3.2020, p. 5) and 
Regulation  (EU)  2020/558  of  the  European  Parliament  and  of  the  Council  of  23  April  2020  amending 
Regulations  (EU)  No  1301/2013  and  (EU)  No  1303/2013 as  regards  specific  measures  to  provide  exceptional 
flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak 
(OJ L 130, 24.4.2020, p. 1). 
7 
Net  primary  government  expenditure  comprises  total  government  expenditure  excluding  interest 
expenditure,  expenditure  on  Union  programmes  fully  matched  by  Union  funds  revenue  and  non-discretionary 
changes  in  unemployment  benefit  expenditure.  Nationally  financed  gross  fixed  capital  formation  is  smoothed 
over a four-year period. Discretionary revenue measures or revenue increases mandated by law are factored in. 
One-off measures on both the revenue and expenditure sides are netted out. 

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(14) 

Programme.  The  macroeconomic  and  fiscal  outlook  is  affected  by  high  uncertainty 
due to the COVID-19 pandemic. 

In response to the COVID-19 pandemic, and as part of a coordinated Union approach, 
Belgium has adopted budgetary measures to increase the capacity of its health system, 
contain  the  pandemic,  and  provide  relief  to  those  individuals  and  sectors  that  have 
been  particularly  affected.  According  to  the  2020  Stability  Programme,  those 
budgetary  measures  amounted  to  2,3%  of  GDP.  The  measures  include  a  federal 
temporary  unemployment  benefit  scheme,  replacement  income  for  self-employed, 
federal  provision  for  crisis-related  expenditure,  various  regional  allowances  for 
companies  and  sectoral  subsidies.  The  quantification  of  the  deficit-increasing 
measures  broadly  coincides  with  the  Commission’s  estimates,  once  the  different 
treatment  of  the  cost  of  automatic  stabilisers  is  taken  into  account.  In  addition, 
Belgium  has  announced  measures  that,  while  not  having  a  direct  budgetary  impact, 
will contribute to support liquidity to businesses. Those measures concern both federal 
and  regional  loan  guarantees  for  companies  and  the  self-employed,  which  the  2020 
Stability Programme  estimates  at  11,8% of GDP. Tax deferrals,  notably for personal 
and corporate income taxes and social contributions, have also been implemented but 
the 2020 Stability Programme does not quantify them. Overall, the measures taken by 
Belgium are in line with the guidelines set out in the Commission Communication on 
a coordinated economic response to the COVID-19 outbreak. The full implementation 
of  those  measures,  followed  by  a  refocusing  of  fiscal  policies  towards  achieving 
prudent medium-term fiscal positions when economic conditions allow, will contribute 
to preserving fiscal sustainability in the medium term.  

(15)  Based on the Commission 2020 spring forecast under unchanged policies, Belgium’s 
general government balance is forecast at -8,9% of GDP in 2020 and -4,2% in 2021. 
The general government debt ratio is projected to reach 113,8% of GDP in 2020. 

(16)  On 20 May 2020, the Commission issued a report prepared in accordance with Article 
126(3) of the Treaty due to Belgium’s non-compliance with the debt rule in 2019 and 
the planned breach of the 3% of GDP deficit threshold in 2020. Overall, the analysis 
suggests  that  the  deficit  and  debt  criteria  as  defined  in  the  Treaty  and  in  Regulation 
(EC) No 1467/1997 are not fulfilled.  

(17) 

In response to the outbreak of the COVID-19 pandemic, the Belgian authorities have 
adopted  a  comprehensive  package  of  measures  to  mitigate  the  social  and  economic 
impact  of  the  sharp  economic  downturn.  A  EUR  50  billion  guarantee  scheme  is  in 
place  for  new  short-term  credit  granted  to  viable  businesses.  The  regions  and 
communities  have  also  introduced  guarantees  for  bridge  and  regular  business  loans, 
liquidity support to businesses in the form of direct loans and measures to financially 
support  businesses  most  affected  by  the  crisis.  The  reimbursement  of  existing 
mortgages  and  business  loans  can  be  extended.  A  temporary  moratorium  on 
bankruptcy  proceedings  for  hard-hit  businesses  is  available.  Different  incentives  to 
encourage  more  workers  to  stay  at  work  or  take  up  work  again  to  ensure  business 
continuity have been introduced. Social security contributions and tax payments, such 
as  value-added  tax,  corporate  and  personal  income  taxes,  may  be  deferred  or  are 
exempted  in  some  cases.  The  federal  government  has  made  the  temporary 
unemployment scheme due to  force majeure  available for  companies  affected by the 
crisis, with increased benefits. A monthly replacement income is available for the self-
employed whose activity has been interrupted for at least seven consecutive days. The 
degressivity of unemployment benefits is temporarily frozen. The federal government 

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is  also  preparing  an  additional  set  of  measures  to  counter  insolvency  of  businesses, 
such as a corporate and personal income tax exemption for the 2020 fiscal year.  

(18)  The  Belgian  health  system  performs  well  in  providing  acute  care  in  hospitals. 
Nonetheless, the COVID-19 outbreak has highlighted a number of shortcomings in the 
health system’s resilience when faced with  a severe public health crisis.  It  has made 
apparent  that  Belgium  faces  a  structural  shortage  of  health  workers  that  needs  to  be 
addressed.  In  the  immediate  future,  ensuring  sufficient  critical  medical  products, 
including  protective  equipment  in  particular  for  health  workers  and  workers  in  other 
exposed  occupations,  will  remain  key.  A  public  healthcare  strategy,  which  is  fully 
coordinated  with  prevention and long-term care  policies, will remain  essential  in  the 
short  and  medium  term  to  ensure  that  public  health  crisis  such  as  COVID-19  are 
effectively managed. The smooth implementation of the Inter Ministerial Conference 
agreement  on  public  healthcare  to  make  hospital  staff  and  infrastructure  (a  federal 
competence)  available  to  long-term  care  facilities  (a  community  competence)  is  an 
important building block in this context.  

(19)  After  reaching  record  high  levels  of  employment  in  2019  and  in  the  beginning  of 
2020,  the  COVID-19  crisis  has  abruptly  halted  employment  growth  in  Belgium. 
Belgium’s  existing  public  income  support  schemes  such  as  the  system  of  temporary 
unemployment for employees and the bridging right for self-employed provide partial 
compensation  for  income  losses  due  to  reduced  working  time.  These  short-time 
working  schemes  play  a  major  role  in  reducing  the  impact  of  lowered  production 
output on employment levels. Nevertheless,  unemployment is expected to rise to 7% 
in 2020 and to reduce somewhat to 6,6% in 2021. In order to prevent that the increase 
in unemployment becomes structural, further efforts will be needed to strengthen the 
effectiveness of the existing active labour market policies, which remain low as a high 
share  of  unemployed  participating  in  active  labour  market  measures  coexists  with  a 
low transition from unemployment to employment. Particular attention should be paid 
to ensuring a comprehensive approach for those furthest from the labour market that 
are likely to be the most affected by the negative socio-economic consequences of the 
crisis.  Vulnerable  groups include in  particular the low-skilled, people with a migrant 
background and people with disabilities. In addition, the labour tax wedge remains on 
average  high  at  all  wage  levels,  except  for  the  very  low  wage  earners  (50%  of  the 
average wage). This is an important driver of the relatively high cost of labour, which 
may negatively affect labour demand, in particular for low productivity jobs.  

(20)  Labour  mobility  should  be  fostered  towards  the  sectors  where  there  are  major 
shortages,  including  health,  information  and  communication  technologies  (ICT)  and 
technical  and  professional  occupations.  This  will  be  accompanied  with  important 
needs in terms of re- and up-skilling and will require to increasing the level of adult 
participation in education and training, including by using periods of reduced working 
hours.  There  are  concerns  that  the  existing  training  incentives  schemes  do  not  reach 
those that would benefit  the most, such as the low-skilled, older workers and people 
with  a  migrant  background.  Poor  language  skills  are  a  major  barrier,  in  particular  in 
bilingual  Brussels.  The  communities  are  taking  action  to  increase  the  uptake  of 
science, technology, engineering and mathematics studies, but there is scope for more 
comprehensive  strategies  to  meet  future  labour  market  demand.  The  overall  level  of 
digital  skills  is  good,  but  remains  stagnant.  Among  young  people,  and  in  particular 
among  those  with  low  education,  the  level  of  digital  skills  is  lower  than  the  EU 
average  and  has  been  worsening  over  the  past  years.  Availability  of  adequate 
equipment  and  internet  connection  for  all  students  accompanied  by  the  necessary 

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teacher  training  and  mentoring  schemes,  is  essential  to  ensure  access  to  distance 
learning. This is also needed to ensure existing inequalities in the education system are 
not exacerbated due to the crisis. 

(21)  Belgium has adopted many schemes to support the liquidity of firms, including a State 
guarantee scheme to loans and several regional schemes notified under the temporary 
framework  for  State  aid  measures  to  support  the  economy  in  the  current  COVID-19 
outbreak.  An  efficient  and  effective  implementation  of  such  schemes,  including  by 
intermediaries,  is  key  to  ensure  that  firms,  and  especially  small  and  medium 
enterprises and self-employed, benefit from them in order to protect them and to allow 
for a faster recovery. In the process of designing and implementing these measures the 
resilience  of  the  banking  sector,  including  the  intermediaries,  needs  to  be  taken  into 
account 

(22)  Despite government efforts, the administrative burden on firms weights some EUR 7 
billion per  year  (1,6%  of GDP), most of  which  comes from complying  with  tax and 
labour  law.  The  tax  system  is  complex  because  of  various  tax  expenditures.  The 
payroll management for a company is complex, in particular for companies that need 
to  manage  the  various  regional  systems.  Businesses  experience  increasing  delays  in 
payment  by public authorities contributing to  businesses’ failures  and a deteriorating 
business  climate.  There  are  long  delays  for  building  permits,  electricity  and  water 
connections. The process of transferring a property is among the slowest and the most 
expensive in the EU. There are major regional discrepancies in entry requirements for 
craft/construction services. Rules on shop opening hours, sales promotions, discounts 
and  distribution  channels  for  non-prescription  medicines  weight  on  the  operational 
environment  for  retailers.  The  roll-out  of  5G  is  being  held  back  amongst  others  by 
strict  radiation  limits  (notably  in  Brussels)  varying  in  each  region,  by  expensive 
antennae taxes in Brussels and the long delivery time of permits to deploy antennae. In 
the area of insolvency, there is no special simplified out-of-court settlement procedure 
for  small  and  medium  enterprises  and  only  debtors  can  start  insolvency  procedures. 
Despite  gradual  improvements,  insufficient  digitalisation  and  a  lack  of  resources 
remain  a  challenge  for  the  justice  system.  Lengthy  proceedings  in  administrative 
justice cause significant delays for public procurement and building permit cases. Key 
enforcers  in  market  surveillance,  competition  and  rail  transport  are  understaffed  to 
perform their tasks. 

(23)  To  foster  the  economic  recovery,  it  will  be  important  to  front-load  mature  public 
investment  projects  and  promote  private  investment,  including  through  relevant 
reforms.  As  expressed  in  its  2021-2030  National  Energy  and  Climate  Plan  (NECP), 
Belgium  has  significant  investment  needs  in  sustainable  transport,  notably  to  tackle 
congestion  and  electric  mobility.  Before  the  crisis,  Belgian  regions  had  announced 
major multi-annual transport infrastructure plans. Major investment is taking place in 
suburban rail around Brussels, signalling, port and cross-border rail connections. The 
NECP  also  identified  important  investment  needs  in  renewable  and  flexible  power 
generation,  interconnections,  smart  grids,  storage  and  in  energy  efficiency  to  meet 
European energy targets, to realise Belgium’s commitment to fully phasing out nuclear 
energy  by  2025  and  to  renovate  80%  the  building  stock  which  was  built  before  the 
introduction  of  energy  norms.  In  contrast  to  the  relatively  high  private  research  and 
development (R&D) intensity, the public R&D intensity remains slightly below that of 
most  Member  States  with  a  similar  level  of  economic  development.  Belgium  risks 
lagging behind in 5G deployment as it is not planning to assign the 5G pioneer bands 
within  the  deadlines  provided  in  Union  legislation.  In  March  2020,  the  Belgian 

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authorities  opened  a  public  consultation  for  temporary  national  licenses  for  the  200 
MHz  of  available  spectrum  in  the  band  3.6-3.8  GHz  as  a  temporary  solution.  The 
programming  of  the  Just  Transition  Fund  for  the  period  2021-2027  could  help 
Belgium to address some of the challenges posed by the transition to a climate neutral 
economy,  in  particular  in  the  territories  covered  by  Annex  D  to  the  country  report. 
This would allow Belgium to make the best use of that fund. 

to  address  medium- 

(24)  While the present recommendations focus on tackling the socio-economic impacts of 
the  pandemic  and  facilitating  the  economic  recovery,  the  2019  country-specific 
recommendations adopted by the Council on 9 July 2019 also covered reforms that are 
essential 
structural  challenges.  Those 
recommendations remain pertinent and will continue to be monitored throughout next 
year’s  European  Semester  annual  cycle.  That  also  applies  to  recommendations 
regarding investment-related economic policies. The latter recommendations should be 
taken  into  account  for  the  strategic  programming  of  cohesion  policy  funding  post-
2020, including for mitigating measures and exit strategies with regard to the current 
crisis. 

long-term 

to 

(25)  The  European  Semester  provides  the  framework  for  continuous  economic  and 
employment  policy  coordination  in  the  Union,  which  can  contribute  to  a  sustainable 
economy.  Member  States  have  taken  stock  of  progress  regarding United  Nations’ 
Sustainable  Development  Goals  (SDGs)  implementation  in  their  2020  National 
Reform  Programmes.  By  ensuring  the  full  implementation  of  the  recommendations 
below, Belgium will contribute to the progress towards the SDGs and to the common 
effort of ensuring competitive sustainability in the Union.  

(26)  Close coordination between economies in the economic and monetary union is key to 
achieve  a  swift  recovery  from  the  economic  impact  of  the  COVID-19.  Belgium 
should,  as  a  Member  State  whose  currency  is  the  euro  –  and  taking  into  account 
political  guidance  by  the  Eurogroup  –  ensure  its  policies  remain  consistent  with  the 
euro area recommendations and coordinated with those of the other euro area Member 
States. 

(27) 

In  the  context  of  the  2020  European  Semester,  the  Commission  has  carried  out  a 
comprehensive  analysis  of  Belgium’s  economic  policy  and  published  it  in  the  2020 
country  report.  It  has  also  assessed  the  2020  Stability  Programme  and  the  2020 
National  Reform  Programme  and  the  follow-up  given  to  the  recommendations 
addressed  to  Belgium  in  previous  years.  It  has  taken  into  account  not  only  their 
relevance  for  sustainable  fiscal  and  socioeconomic  policy  in  Belgium,  but  also  their 
compliance with Union rules and guidance, given the need to strengthen the Union’s 
overall  economic  governance  by  providing  Union-level  input  into  future  national 
decisions.  

(28) 

In  the  light  of  that  assessment,  the  Council  has  examined  the  2020  Stability 
Programme and its opinion8 is reflected in particular in recommendation (1) below,  

HEREBY RECOMMENDS that Belgium take action in 2020 and 2021 to: 

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In  line  with  the  general  escape  clause,  take  all  necessary  measures  to  effectively 
address the pandemic, sustain the economy and support the ensuing recovery. When 
economic  conditions  allow,  pursue  fiscal  policies  aimed  at  achieving  prudent 

Under Article 5(2) of Council Regulation (EC) No 1466/97. 

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2. 

3. 

medium-term  fiscal  positions  and  ensuring  debt  sustainability,  while  enhancing 
investment.  Reinforce  the  overall  resilience  of  the  health  system  and  ensure  the 
supply of critical medical products. 

Mitigate  the  employment  and  social  impact  of  the  crisis,  notably  by  promoting 
effective active labour market measures and fostering skills development.  

Ensure effective implementation of the measures to provide liquidity to assist small 
and  medium-sized  enterprises  and  the  self-employed  and  improve  the  business 
environment.  Front-load  mature  public  investment  projects  and  promote  private 
investment  to  foster  the  economic  recovery.  Focus  investment  on  the  green  and 
digital  transition,  in  particular  on  infrastructure  for  sustainable  transport,  clean  and 
efficient production and use of energy, digital infrastructure, such as 5G and Gigabit 
Networks, and research and innovation. 

Done at Brussels, 

For the Council 
The President 

EN 

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  EN