Belgium’s new coalition government, formed almost eight months after June’s national elections, is set to tackle the country’s pressing budget issues with a focus on socio-economic recovery. The new government, led by Flemish conservative Bart De Wever, aims to reform pensions, limit unemployment benefits, and tackle migration issues.
Despite having one of the highest debt-to-GDP ratios in the EU, with projections showing an increase to 119.5% by 2028, De Wever is determined to “sanitize” the budget and reduce tax pressure. He also set a deadline for government formation by January 31, emphasizing the urgency of fixing the budget in response to EU and international market pressure.
Key changes in the coalition’s agreement include limiting unemployment benefits to two years, with a reduced amount over time, and adjusting pensions to ensure affordability. There will also be fiscal reforms to lower labor costs and increase net earnings for low-wage workers. Additionally, a new capital gains tax will be introduced, though tax benefits will be available for those investing in the economy.
The government plans tougher measures on migration, including higher return rates, stricter asylum policies, and more stringent family reunification requirements. Refugees will have to follow an enhanced integration path, or risk their benefits being reduced.
Other notable changes include the end of Belgium’s nuclear phase-out, the construction of a new nuclear reactor, stricter enforcement of traffic laws, and harsher anti-smoking measures. Vaping, especially among young people, will face tighter restrictions.
The government also plans to invest more in its military, aiming to reach 2.5% of GDP by 2034. Belgium will increase its military forces and invest in new defense technologies, including additional fighter jets and drones. Meanwhile, efforts to tackle crime in Brussels will include merging police zones to improve efficiency.
Symbolically, the agreement calls for cuts in politicians’ pensions and the elimination of the Senate, which has become less relevant over time.
