Belgium cuts defense forces in budget squeeze

By RAF CASERT

posted: 44 DAYS 17 HOURS AGO

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BRUSSELS -Belgium plans to cut its defense force by nearly 20 percent as part of budgetary belt-tightening, the government announced Tuesday, insisting the move won't affect the country's international commitments.

Defense Minister Pieter De Crem said the reduction from 42,000 troops to 34,000 was necessary because the budget had too high personnel costs and still needs to upgrade its equipment and other sectors.

"The point is to have better armed forces at a lower cost," he said.

Overall, the defense ministry plans to cut euro100 million ($148 million) next year from its budget of euro2.7 billion ($4 billion).

De Crem says the country's participation in international operations like Afghanistan, Kosovo and Lebanon will be not be downgraded.

"Foreign operations are the essence," he said.

He hopes to push through the plan without any layoffs, either by transferring staff to other government services or having them take early leave with reduced pay. De Crem wants to close 23 of 800 barracks across the country.

The government on Tuesday agreed on euro3.8 billion ($5.6 billion) in spending cuts and tax hikes to balance the national budget by 2015.

Prime Minister Herman Van Rompuy led Cabinet negotiations on a new two-year spending plan that ended early Tuesday. Taxes on diesel fuel will rise, along with charges to energy producers in exchange to keep open three aging nuclear reactors. Other government spending, including on defense, will be cut back.

The government has also lowered sales taxes on restaurant dinners and instituted tax breaks for house builders to get the country out of its recession.

2009-10-13 08:16:38