Belgium coped well with the pandemic and energy crisis, but fiscal support to mitigate their impact has brought higher fiscal deficits and further increases in public debt. The ratio of public debt to GDP is among the highest in the EU; it stood at 105% in 2023. Absent of fiscal consolidation, the sustainability of public finances is at risk. Demographic change is exacerbating the challenge of ensuring fiscal sustainability. Costs related to ageing, particularly spending on pensions and long-term care, are projected to increase by 3.7 percentage points of GDP by 2060, much larger than the average EU country (European Commission, 2024). Furthermore, the digital and green transitions require substantial public investment, accentuating the fiscal challenge. […]