Yet another Federal Government negotiation leak shows that the next government will rein in social benefits.
As 'Arizona' coalition partners reach the end of talks to form Belgium's next government, the content of negotiations has begun to leak to the press again. On Monday, a source confirmed to La Libre that social benefits would be capped to make up for a temporary freeze imposed by Charles Michel's government.
"To increase the gap between work and inactivity, and to offset the increase of recent years, social integration incomes and long-term unemployment benefits will not be indexed during this legislature, except in the event of exceptionally high inflation," a section of N-VA leader Bart De Wever's socio-economic 'supernote' states.
"The fact that, apart from pensions, social benefits are not indexed, unlike salaries, has its origins in what happened under the previous legislature," the source explained to La Libre.
Social benefits were indexed under the subsequent Vivaldi government under Alexander De Croo to cope with the economic effects of the Covid-19 pandemic and the Russian invasion of Ukraine. For instance, the minimum pension for single people rose from €1,292 to €1,737 (+34%) between 2020 and 2024. The overall increase in social benefits during this time amounts to around 35%.
Another factor at play is the incoming government's desire to reduce Belgium's budget deficit. Negotiators want to encourage reintegration into the job market by securing a difference of €500 between wages and unemployment benefits.
Negotiators are also aiming to implement a one-year cutoff rate for young graduates unable to find work when they finish their studies. The current limit is three years, with an additional six months for exceptional cases.
