De Wever government reaches major agreements

It’s finally happening: unemployment benefits will now be time-limited. But that’s not the only issue the federal government has resolved. Asylum and migration laws are also being tightened, and additional funding has been allocated to defence and justice.

Below are the key pillars of what has come to be known as the “Easter Agreement.”

Historic socio-economic reforms

Over 300 pages of legislative changes bring the socio-economic reforms outlined in our coalition agreement to life.

This government is committed to getting more people into work, keeping 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 both sustainable and reliable, and making our economy more competitive.

• From 1 July 2025, unemployment benefits will finally be limited to a maximum of two years. Exceptions will apply for those over 55 with at least 30 years of employment history, and for those following care-related training, among others.
• We want to guide more people on long-term sick leave back to the workforce by strengthening the “Back to Work” programme. This involves the shared responsibility of employees, employers, health insurers and doctors.
• People working flexi-jobs will now be allowed to earn up to €18,000 per year (up from €12,000).
• A €1 billion reduction in labour costs aims to boost business Competitiveness The extent to which companies in one country can compete with similar companies in another country. A law came into force in Belgium in 1996 to monitor competitiveness. This stipulates that Belgian salaries may not evolve faster than the average of those in the three neighbouring countries. The Central Economic Council (CEC) performs an annual measurement to see if the objectives have been obtained. competitiveness .
• We will save €200 million by capping the indexation of the highest pensions. The current pension Bonus Career break for the calculation of, specifically, civil servant’s pension. In order to obtain the annual pension amount in the public sector, the reference salary is multiplied by the number of employment years. That result is then multiplied by the 1/60 career break, the so-called bonus. An advantageous break applies for certain employees, so that they can reach the maximum pension more quickly. bonus will be replaced by a bonus-malus system.
• The VAT rate on demolition and reconstruction will be lowered to 6%, provided it concerns a primary residence of up to 175 square metres.
• Healthcare will not be subjected to cutbacks. By raising the growth norm from 2.5% to 3% (by 2029), we can continue to meet the growing demand for quality care.
• The government is strongly committed to tax fairness. Taxpayers will no longer automatically face higher tax bills due to minor discrepancies during audits. At the same time, we will intensify the fight against tax fraud using data mining techniques.

Largest defence investment in 40 years

Another key component is the accelerated increase in defence spending. While the coalition agreement already aimed to reach NATO’s 2% of GDP The gross domestic product (GDP) is the total monetary value of all goods and services produced within a country, both by companies and the government. This term is usually used as a benchmark for a country’s prosperity. This is why the N-VA closely follows the evolution of the Belgian GDP. GDP target by 2029, that goal will now be achieved as early as 2025.

This sends a strong signal to the international community: Belgium is a reliable partner. We stand with our allies.

• The additional €3.9 billion will come from a variety of sources:
  • €1.2 billion from corporate tax on frozen Russian assets;
  • €500 million from a Belfius dividend;
  • €2 billion provisionally off-budget, as permitted by the EU. This amount will gradually be converted into structural funding, with the aim of reducing it to near zero by 2029.
• By 1 July, Defence Minister Theo Francken will present a strategic plan detailing concrete investments and spending.
• Finance Minister Jan Jambon will also establish a Defence Fund, fed by dividends from state-owned companies. This fund will be used to invest strategically in high-tech, innovation and industry.
• Defence will also play a greater role in domestic security, including the protection of sensitive nuclear facilities.

Greater flexibility for more security

The budget provided in the coalition agreement for strengthening security services and the return policy can be used flexibly, as long as the overall envelope is not exceeded.

This allows us to release more than €150 million in additional funds this year to safeguard internal security.

• Prison overcrowding will be tackled by returning inmates without residence rights to their countries of origin.
• Concrete steps will also be taken to make use of prison capacity abroad in the short term.
• Accelerated investments in cybersecurity are also planned.

The strictest asylum and migration policy ever

Belgium must no longer be the weak link in Europe. To reduce the influx of migrants, the government is introducing the strictest asylum and migration policy in its history.

• Asylum seekers who have already been granted protection in another EU country will no longer be eligible for reception in Belgium—putting an end to so-called “asylum shopping.”
• Abuse of the asylum procedure involving minors will also be addressed. Anyone submitting a new application through their child after a previous rejection, without presenting new elements, will no longer be entitled to reception.
• Stricter rules will apply to family reunification. The income threshold for sponsors will be raised, and waiting periods will be introduced.
• Applying for Belgian citizenship will now cost €1,000 instead of €150.
• An asylum application will no longer automatically entitle someone to social benefits: no reception means no subsistence income.