De Wever government restores fiscal order

Thanks to the budget agreement reached today, our welfare state has been pulled back from the brink. Over the course of this legislative term, public debt will be reduced by a total of €32 billion. At the same time, work will pay more, and our Social security Social security is currently managed at the Federal level in Belgium. The most important pillars of Belgian social security are: sickness and invalidity insurance (NIDHI), pensions, unemployment insurance and child allowances. In addition, occupational illness, occupational accidents and annual holidays are dealt with at this level. Some Flemish parties have been campaigning for years for (large parts of) social security to be transferred to the Regions and Communities. social security system is being made fairer and more sustainable. “This agreement puts a strong focus on reforms and savings—especially when you take the full picture into account, including the measures we already included in the coalition agreement,” said Prime Minister Bart De Wever. He was referring to the pension reform, labour market reform, and tax reform, all of which were tied to this agreement and can now move forward.

Key points from the new deal:

• A tougher stance on social fraud, with a goal of getting 100,000 long-term sick people back to work
• No across-the-board VAT increase, but targeted, logical shifts for certain products and services—such as takeaway meals, hotels, pesticides, and festival tickets
• In 2026 and 2028, all gross wages up to €4,000 will be indexed as usual. Higher wages will still be indexed, but with a fixed amount. Ministers and members of parliament will see no indexation of their salaries at all during this term

Party chair Valérie Van Peel also welcomed the renewed momentum for deep reform. Speaking on De Wereld Vandaag on Radio 1, she said: “This government keeps delivering agreements that have been considered impossible for decades. Capping unemployment benefits in time, major pension reforms... And we’re also making work more rewarding, with a tax cut on the horizon. Now we’re tackling another major challenge that’s been on the table for a while: long-term illness.”

“These are huge reforms that will pay off not just in the coming years, but for generations to come. It’s crucial that these measures go ahead—and long overdue. This government has every reason to be proud of what it’s achieving,” Van Peel concluded.