Belgian PM: ‘Biggest socio-economic reform of the century’
Bart De Wever marked his first Belgian National Day as prime minister on Monday with a summer agreement. After a night of negotiations, the federal majority parties agreed on reforms in pensions, the labour market, healthcare and taxes. “We are reforming at a pace not seen in this country for a long time,” he said.
A few hours before he was due to attend the 21 July celebrations, De Wever and the deputy prime ministers explained the summer agreement at a press conference. “What this government is doing in less than six months is unprecedented in Belgium in this century,” he said. Earlier this week, he also spoke in parliament of “the biggest socio-economic reforms of the century”.
The reforms are an elaboration of the coalition agreement and are in addition to the measures for the 2025 budget, which were approved by Parliament last week. That package included a limit to how long people can receive unemployment benefits.
Pensions reform
A reform of pensions is intended to keep the ageing population financially viable. Those who have not worked enough and still take early retirement will initially lose 2 per cent of their pension amount. In the long term, this will rise to 5 per cent.
However, those who have worked for 42 years and have worked at least 35 years part-time will be spared. Periods of long-term illness, temporary unemployment and care leave will be taken into account.
Vooruit and CD&V, who would have liked to see broader social corrections, obtain in exchange more flexible access to the minimum pension for those who have been temporarily unemployed or ill for a long time.
Minister of Finance and Pensions Jan Jambon added that the lower statutory retirement age for SNCB/NMBS driving personnel (55 years) and military personnel (56) will gradually be brought into line with the general scheme. The harmonisation of civil servants' pensions with those of employees and the self-employed was also confirmed.
Tax on labour
Tax on labour will be reduced. “The focus is on people who work, especially those with low and average wages,” said De Wever.
By the end of the legislative period, this should result in an average of around 100 euros extra net per month for those who work. “In total, this is a package of purchasing power measures worth no less than 4.3 billion euros,“ said Jambon. Budget minister Vincent Van Peteghem added that “this is a major incentive to get people into work and keep them there”.
"This is a major incentive to get people into work and keep them there”
Labour market reforms form a third part of the summer agreement. “We want to create a climate in which companies want to invest in our country and create jobs,” said De Wever. For example, night work is currently prohibited as a rule, although there are sectoral exceptions. That general ban will disappear and the conditions will become more flexible. There will also be more flexible rules on overtime and working hours.
Not the end
The coalition partners also agreed on reforms in healthcare. This mainly concerns fee supplements, the extra fees that doctors can charge. Health minister Frank Vandenbroucke had put forward a proposal to limit these, which led to the first doctors' strike in decades.
The government has now agreed that further consultations with doctors will follow. If no agreement is reached with them, the government will introduce a ceiling itself in 2027.
This year, there will already be adjustments to the tariff agreements between doctors and health insurance funds. It will become more financially attractive for healthcare providers to sign up to the agreements, which means that they respect the price agreements and don’t charge supplements.
"We still have a lot of work to do"
“We are not yet at the end of this story,” said De Wever. “As Churchill once said: this is not the end and this is not the beginning of the end. It is perhaps the end of the beginning. We still have a lot of work to do.”
This work includes the further restructuring of public finances, as Belgium is facing a budget deficit of 6.5 per cent of gross domestic product by 2030.
Finance minister Jan Jambon, Foreign minister Maxime Prevot and prime minister Bart De Wever © BELGA PHOTO BENOIT TOUSSAINT