Belgian Government Struggles to Finalize Summer Reforms Ahead of National Holiday
With only days left until the national holiday on July 21, Prime Minister Bart De Wever’s coalition is attempting to finalize a complex summer agreement encompassing several contentious reform issues. However, significant hurdles remain, reports 24brussels.
As summer recess approaches, De Wever’s administration is facing mounting pressure to secure a broad agreement that will facilitate the implementation of long-planned reforms. Recent weeks have seen some progress on sensitive topics such as the capital gains tax and unemployment benefits limitations, yet numerous aggravating challenges persist.
Healthcare Reforms
Health Minister Frank Vandenbroucke’s proposed reforms, particularly the introduction of a cap on doctors’ fee supplements, have faced considerable backlash from medical unions, who argue that such measures could jeopardize both care quality and practitioner autonomy. The liberal MR party has also voiced concerns, viewing the proposal as a potential step toward a state-run healthcare model. While Vandenbroucke maintains his stance, insiders indicate the issue may be deferred until after the summer recess.
Labour Market Discussions
Negotiations regarding the labor market are proving equally challenging. According to the coalition agreement, proposed reforms aim to liberalize labor regulations, such as easing restrictions on night work. However, these plans have drawn criticism from coalition partners who accuse Work Minister David Clarinval of overreaching. Among the contentious points is a proposal to reduce severance pay from two years to one for new contracts, with Clarinval now advocating for retroactive application to existing contracts.
Additionally, Clarinval’s plan to cut night shift premiums in the distribution industry and eliminate restrictions on night and weekend work altogether in construction is met with increasing opposition.
Pension Reforms
Pension reform negotiations are reportedly progressing but remain politically sensitive. The proposal for a ‘pension malus’, which would penalize workers retiring before the legal age if they haven’t completed a 35-year career, has sparked protests from unions and workers. CD&V leader Sammy Mahdi criticized the fairness of such a measure, questioning whether those with long-term illnesses should face penalties in retirement.
Mahdi has suggested a system of “unluck days” that would exempt periods of caregiving or illness from the penalty, a notion supported by Vooruit and Les Engagés.
Defence Spending
In advance of the NATO summit in June, the Belgian government outlined a strategy to enhance defense spending, aspiring to meet NATO’s 2% GDP target. Defence Minister Theo Francken announced the most substantial military investment in four decades, which involves acquiring new frigates, drones, and air defense systems. However, discussions are ongoing regarding the purchase of an additional eleven F-35 fighter jets, following concerns from partners such as Vooruit about the timing of the decision.
Social Welfare Funding
Within the debate over limiting unemployment benefits, Les Engagés have called for increased funding for Public Centres for Social Welfare as a prerequisite for their support. Coalition partners, including N-VA, appear to agree on the need for additional funding; however, discussions continue regarding the financing sources for these supports in light of expected savings from the unemployment reforms.
Next Steps
The core cabinet began addressing these crucial files on July 10, with further meetings scheduled to expedite negotiations ahead of the impending July 21 deadline. Nevertheless, as time is limited and all topics are interlinked, it remains uncertain whether the government will successfully consolidate a comprehensive agreement.
