Who is going to pay for it? Initial observations on the Vivaldi government budget plans

12 October 2021

These are the N-VA Parliamentary Group’s first five general observations on the federal budget plans:

  1. As regards the budget, the efforts are severely below the bar that State Secretary De Bleeker set for herself (3%). We are continuing on the path towards the largest budget deficit in the EU.
  2. There will be new taxes probably worth more than EUR 1 billion. And that for one of the top five countries with the highest tax burden in the world. Who is going to pay for it?
  3. In terms of the labour market, this concerns a series of separate measures. The most significant is that the long-term sick lose a full 2.5% of their benefits if they refuse to fill out a questionnaire. And that is after the benefits had already been increased. So that is a zero-sum operation. If it is indeed the case that other possible measures still largely have to be considered by social partners, then we wonder what else will be added? This lack of ambition will not get us to that 80% employment rate. Working will in no way become more attractive, and long-term inactivity will not be tackled qualitatively.
  4. Energy: the middle class absorbs the costs and pays threefold: for their own higher bills, for the social rate that mainly goes to inactive people and for the one-off cheque for the same group that already receives a social rate. As a minimum compensation, the middle class receives a sum of about EUR 30 in return, which in fact only cancels out the previously increased federal taxes. Moreover, the subsidy invoice for gas-fired power stations is not even included.
  5. Another offensive point is that the De Croo government does not give the federal parliament the scoop and prefers a press conference. Yet another great example of “political innovation”.

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