Federal parliament set to vote on controversial budget measures
Following several delays, Belgium's federal parliament is set to vote on a number of austerity measures on Thursday evening. The proposed measures are intended to reduce the country's budget deficit, but are unpopular with the public and even some members of the governing parties.
The Chamber of Representatives is expected to approve the budgetary measures on Thursday night, following a troubled parliamentary process marked by late submission by the government and sustained objections from the opposition.
The two central measures are a pension reform designed to improve the long-term financial sustainability of the system, and the so-called "centenindex" - a modification to Belgium's automatic wage indexation system. If approved, full wage indexation would be capped at gross salaries up to 4,000 euros and benefits up to 2,000 euros, on two occasions during the current legislature.
The centenindex has proved deeply controversial. A report by the Planning Bureau concluded that the measure will yield less in savings than the government had projected, and a recent poll found that fewer than a third of voters in Flanders, Wallonia and Brussels support it.
Majority parties oppose measure
Coalition partners CD&V and MR are also opposed to the centenindex, though both parties have said they will back it in Thursday's vote as it forms part of the budget agreement reached by the majority parties in November. They intend to revisit the issue during future budget negotiations.
Earlier this week, MR chairman Georges-Louis Bouchez suggested a compromise was still possible. "We could apply the centenindex once, and on the second occasion implement the social partners' measure," he said, referring to a proposal that would limit the effect of rising energy prices on the index rather than capping wage rises directly.
Further budget negotiations are scheduled to begin on Friday, with the government leadership aiming to reach working agreements at that meeting. Prime minister Bart De Wever has made clear he wants a deal on the restructuring of the multi-year budget by 21 July. Estimates point to a further effort of between five and seven billion euros in savings; De Wever himself referred to "several billion" euros without specifying a figure.
Speaking on Thursday, De Wever acknowledged the political difficulty of the exercise. "Implementing austerity measures in this country is no walk in the park," he said. "The challenge is to maintain public support, and the watchword is to act in the public interest."
Belgian prime minister Bart De Wever. © BELGA PHOTO JONAS ROOSENS
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