Government receives high marks from OECD

In a new evaluation report on Belgium, the OECD The Organisation for Economic Cooperation and Development (OECD), established in 1961 as a result of the Marshall Plan, is a cooperation agreement between 34 countries in order to study and coordinate social and economic policy. The member countries try to solve their problems jointly and to mutually align their international policy. The organisation also collects statistical information to make comparative analyses. These OECD analyses are a valuable basis for the N-VA to test policy against itself or even to give shape to it. OECD is praising the reforms pushed through by the current federal government. “The OECD confirms that our long-range plan is by and large in line with its own recommendations,” says Minister of Finance Johan Van Overtveldt (N-VA). “We want to use this plan to resolutely balance the budget, improve employment levels and strengthen our competitive position.”

The OECD feels that 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 can be increased by temporarily stopping wage indexation and reducing employer 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 contributions. Furthermore, the organisation also commended the fact that the 2015 structural measures focus on cutting costs. The OECD also believes that pension reform is an essential component in getting government finances back to a healthy position in the long term.

“The most important conclusion from the report is that the structural reforms and budgetary efforts will lead to greater economic growth in time. And this is necessary to safeguard our prosperity. When growth in the eurozone picks up again, Belgium will be ready to jump in,” concludes Van Overtveldt.