After days of intense discussions, Belgium is on the verge of having a new Federal Government. The last week saw leaders of the five 'Arizona' parties rush to cover the key points that will set out the next government's programme of policies and reforms.
And having been going in circles for most of the eight months since national elections on 9 June 2024, a "hard deadline" was set on 31 January, by which time a deal would have to be secured or else the formator Bart De Wever (N-VA) would walk away from his assignment.
Tensions were high throughout the week, with doubts circulating about whether the parties would reach an agreement or if it would be impossible to find common ground between then economically rightwing parties N-VA and MR and the Flemish socialists Vooruit – the only coalition partner on the left.
Yet in a nail-biting moment of make or break, De Wever finally reported to King Philippe around 22:15 on Friday night, informing him that an agreement was secured. But with this royal formality complete, the negotiators stayed at the Royal Military Academy discussing the details of the next government. They stayed until 05:00 on Saturday morning. Ministerial portfolios should be decided by Monday.
The agreement will now be subjected to party membership approval through party congresses taking place this weekend.
What the commentators said
"Better late than never" read headlines on Saturday newspapers across the country, with one French publication likening the birth of the new government to delivering a difficult baby with forceps.
Commentators were quick to zoom in on the fractures between the Arizona parties, which at times derailed the discussions. "Belgium cannot afford a repeat of the Vivaldi government, which was unproductive and inefficient," wrote Paul Gérard in L'Echo. "The discord between the right and left wings during the formation of this new government is not encouraging."
Another francophone paper, Sudinfo, highlighted the strained relationships, power struggles, and bickering between the parties. It felt as if the new government was born more out of negotiation fatigue than a desire to lead Belgium on a bold policy path.
In Flanders, papers pondered De Wever's role in balancing Flemish nationalism and Belgian leadership. "He can’t save the country while convincing people that it has no future," noted Marnix Int Panis of Gazet van Antwerpen.
N-VA leader Bart De Wever arrives for a plenary session of the members of a possible coalition for the Federal Government, on Sunday 29 December 2024 in Brussels. Credit: Belga/Nicolas Maeterlinck
The political establishment
The five parties that will form the next government (right-wing N-VA, liberals MR, centrists Les Engagés, socialists Vooruit and Christian Democrats CD&V) sought to present the agreement as a success, pointing to aspects that would resonate with their supporters.
Francophone liberals MR believes the agreement is exactly what the country needs. "We are neither the party of dreams nor the party of strikes. For seven months, Belgium waited for a government. We did not yield to pressure. We did not sign just for the sake of signing. We negotiated to secure an agreement that matches our victory on 9 June and our commitments," MR stated in a press release.
The party said it will be a government of reforms: it will reduce taxes, promote work through an ambitious energy policy and reinvestment in nuclear power, enforce stricter security policies with genuinely executed sentences, restore public authority, strengthen migration rules, and spend on defence.
Flemish socialists Vooruit told members they had preserved the wage index, ensuring that not only salaries but also social benefits and pensions will continue to increase with the cost of living.
For CD&V the agreement rewards "those who work, undertake, and take responsibility." Party leader Sammy Mahdi said his party has honoured its campaign promises "to better support our working families and give them more breathing room, lowering employment taxes, modernising the labour market, and continuing to invest in health."
Maxime Prévot, leader of Les Engagés, said that high quality and accessible healthcare has been secured. This was a central theme of Les Engagés' election campaign. He insisted that the agreement puts Belgium "back on the tracks of prosperity and credibility."
A poster reading 'Stop Arizona' pictured during a national demonstration against the planned pension reforms of the next Federal Government, Brussels, 13 January 2025. Credit: Belga
Political opponents of the new government were less sympathetic with their reception. Francophone greens Ecolo called it a "Titanic government", saying that Bart De Wever is steering all Belgians into disaster while ensuring only a select few in first class receive life jackets. The party's co-chair Samuel Cogolati said he was "stunned" by the coalition's policies.
President of the Workers' Party of Belgium (PTB/PVDA) Raoul Hedebouw, claimed the government will cut pensions, freeze wages, and dismantle social protection. Hedebouw labelled it a "government of wreckers" and pledged that the PTB will strive to "push it back."
What's on the programme?
Capital gains tax on the sale of shares will be set at 10%. From 2026, the tax-free allowance will increase, and a work bonus will apply to the lowest wages.
Regarding pensions, those who started working at 18 will be able to retire after 42 years of work, at the age of 60. In addition to the pension bonus for those who continue working beyond the statutory retirement age, there will be a pension penalty for those who retire earlier.
Unemployment benefits will be limited but not for those over 55. Initially, individuals who lose their jobs will receive slightly higher benefits and will be more actively guided towards new employment.
The “solidarity contribution” aimed at the wealthiest, will involve taxing capital gains on share sales at a rate of 10%, following tough negotiations. The bank tax will also be increased, and efforts to combat tax fraud will be strengthened.
In terms of migration policy, measures will be taken to limit arrivals and accelerate return procedures. Family reunification rules will be tightened. A special service will be established to assist children more quickly. Families with children will not be detained in closed centres, a measure maintained from the previous government.
Outgoing Defence Minister Ludivine Dedonder (PS) and Belgian Army troops. Credit: Belga
Defence recruitment will continue, and a 12-month voluntary military service will be introduced. There will be investments in modern equipment such as air defence systems, drones, and cyber defence.
A national action plan will be implemented for safety at train stations, particularly Brussels-Midi, with a zero-tolerance policy for drugs. The fight against drugs will be intensified with a specialised service for financial and tax investigations to track criminal money flows. For prison staff, salaries and working conditions will be improved.
Energy policy aims to balance climate needs and purchasing power. The government will gradually remove subsidies for fossil fuels and implement a tax shift towards carbon-neutral energies. VAT on heat pumps will drop to 6%, while VAT on gas boilers and coal will rise to 21%. The government will study the potential roles of existing and new nuclear power plants and invest further in offshore wind farms. The aviation tax will be increased, and high-speed train links between major stations and the national airport will be improved.
In terms of political renewal and institutions, the abolition of the Senate is planned before the next elections, and party funding will be frozen.
