Belgian government races against the clock to reach summer deal
As the clock ticks down to the national holiday on 21 July, prime minister Bart De Wever’s coalition is racing to finalise a summer deal that ties together several sensitive reform dossiers. But key stumbling blocks still remain.
Just days before the summer recess, prime minister Bart De Wever and his government are still scrambling to secure a summer agreement. The deal is meant to pave the way for a smooth rollout of the major planned reforms.
Over the past few weeks, several hot issues have already been tackled, including the capital gains tax and the limitation of unemployment benefits. But progress on those files has unblocked other, equally contentious topics. Here are the key unresolved issues still giving the government headaches:
Supplements in healthcare
Health minister Frank Vandenbroucke’s reform plans continue to stir controversy. His proposal to introduce a ceiling on doctors’ fee supplements has triggered strong opposition from medical unions, who warn it could undermine both the quality of care and the freedom of practitioners.
Tensions also exist within the government itself. The liberal MR party has expressed concerns, fearing this might be the first step toward a state-run healthcare system. While Vandenbroucke remains resolute, insiders say the issue may not be settled before the summer, as it is not considered “crucially important” at this stage. Some believe the file may be postponed until after the recess.
Labour market
Labour market talks are proving equally difficult. According to the coalition agreement, the government would flexibilise labour regulations, including easing restrictions on night work. But coalition partners have accused Work minister David Clarinval (MR) of overreaching.
One example is the severance pay cap. The agreement, proposing a one-year cap instead of the current two, initially targeted new contracts. But Clarinval is now reportedly pushing to apply the measure retroactively to existing contracts as well, a move strongly opposed by Vooruit and CD&V.
There’s also pushback on his proposal to cut night shift premiums in the distribution sector, a plan he is allegedly trying to extend to other industries. In construction, he is looking to scrap restrictions on night and weekend work altogether. This is sparking more resistance from coalition allies.
Pensions
Pension reform talks are reportedly at an advanced stage, but the issue remains politically delicate. Vooruit and CD&V are under pressure from unions and workers who have staged multiple protests in recent months.
Particularly thorny is the so-called ‘pension malus’, which would reduce pensions for workers who retire before the legal age without having completed a 35-year career. CD&V leader Sammy Mahdi recently questioned the fairness of the proposal: “Should someone who battled leukemia for ten years be punished in retirement? Or someone who cared for a sick parent?”
Mahdi proposes a system of “unluck days”, allowing for periods of illness or caregiving to be excluded from the penalty.
Vooruit and Les Engagés have voiced similar concerns.
Defence spending
Just ahead of the NATO summit in June, the Belgian government agreed on a strategic vision to increase defence spending. With NATO now pushing all members beyond the 2 per cent GDP benchmark, investments will have to rise (if only to reach the original 2 per cent). Defence minister Theo Francken (N-VA) has announced the largest military investment in forty years.
This includes purchasing a new frigate, drones, ammunition, and air defence systems. However, discussions are ongoing over the purchase of 11 additional F-35 fighter jets, beyond the 34 already ordered. Vooruit considers the decision premature and is linking its support to progress on the capital gains tax deal.
Social welfare
In the intense debate over limiting unemployment benefits, Les Engagés demanded extra funding for Public Centres for Social Welfare (OCMW/CPAS) as a condition for their support. The centrist party argues that these centres will face more applications for living wages and must be financially prepared.
While most coalition partners, including N-VA, have agreed in principle to additional funding, debate continues on how it will be financed. One key question: Will the expected savings from unemployment reforms be enough to support these centres?
What’s next?
The core cabinet began tackling these files on Thursday 10 July. Another intense meeting followed on Monday 14 July, and the next is scheduled for this Thursday, which could be just in time if the government hopes to finalise the summer agreement by 21 July, Belgium’s national holiday.
However, time is running out and all topics are interconnected. It remains uncertain whether the government can pull together a comprehensive deal in time.
Prime minister Bart De Wever © BELGA PHOTO NICOLAS MAETERLINCK