European Commission wants Belgium to cut subsidies for fossil fuels

The Belgian federal government spends 12 billion euros annually, or 2.4 percent of the gross domestic product, on direct subsidies for fossil fuels. This includes reduced excise duties on heating oil and professional diesel, fuel cards for companies, and the reduced VAT on gas. Only three member states in the European Union are more generous in this regard.

The Commission regrets that there are no plans to phase out the subsidies by 2030. According to it, the support is not only economically inefficient but also perpetuates dependence on fossil fuels and does not contribute to Belgium’s climate commitments. For instance, the subsidies hinder the energy renovation of buildings.

The gradual reduction of subsidies, among other things by shifting excise duties from electricity to fossil fuels, would, according to the Commission, not only help the climate transition but also benefit the state treasury. “This is a significant amount. If you see what needs to be done to consolidate public finances in Belgium, this would really help solve the problems,” it was said in the Berlaymont building.