Belgian federal government agrees on budget law
Belgium’s federal government reached an agreement early on Wednesday on the programme law that puts its budget deal into practice. The deal was finalised around 1am after overnight talks between ministers.
The budget agreement, first struck on 24 November by the De Wever government, aims to save €9.2 billion over the coming years. Many details still had to be worked out and written into law, which has now been done.
Key measures include a two-year cap on wage indexation, higher excise duties on energy products such as natural gas, and higher VAT on some goods and services. One of the most debated points was VAT on takeaway food. Ministers agreed that higher VAT (12 per cent instead of 6) will only apply to food meant to be eaten within two days. This is meant to protect bakeries and caterers, and avoid confusion with supermarket meals.
The government also decided to delay the modifications to the automatic wage indexation system (or the so-called “centen index”). For now, wages will continue to be fully indexed as before. Limits on indexation for salaries above €4,000 gross per month are expected to start only in 2027. The threshold will depend on working hours and will apply only to basic pay, not to bonuses or benefits.
Talks on prison overcrowding and the possible use of soldiers on the streets were not concluded and will continue after the holidays.
© BELGA PHOTO DIRK WAEM