Belgium to be rapped by EU over budget but not fined

(BRUSSELS) - The European Commission is set to rap Belgium this week for failing to do enough to trim its budget deficit but is unlikely to go as far as imposing a fine, according to a press report Saturday.

"Belgium can breath easy," said business daily L'Echo ahead of the release Wednesday of the European Commission's recommendations to EU countries on how to remain on track with the bloc's economic and budgetary targets.

"It will escape a European fine," the paper added, without naming its sources.

The EU executive wants cuts in 2013 amounting to one percent of Belgian GDP, with 0.6 percent in 2014, which is an election year.

It is unhappy with Belgium's paltry 0.4 percent reduction in spending between 2010 and 2012, but after having agreed to give France and Spain extra time to bring their deficits down will not go as far as fining Belgium.

"The Commission is concerned not to give the impression it is favouring a country over others," L'Echo said, addding that the Commission also wanted to avoid fuelling political problems in language-divided Belgium.