Bart De Wever (L) wants to take money from Philippe of Belgium. (Photo by Thierry Monasse/Getty Images)

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Belgium mulls ending life-long unemployment benefits and cuts to fix budget

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A leaked note picked up by Belgian media regarding the ongoing government coalition talks in the country has shown that life-long unemployment benefits were under reconsideration.

This is a non-negotiable point for the political Left, which praises the Belgium system for having a high degree of “solidarity”.

In addition, the parties involved were also said to be discussing “the most strict migration policy ever”, according to news outlets on January 23.

Among the ideas floated was a prison in Kosovo at which illegal criminals could be housed.

Lead negotiator Bart De Wever of the centre-right N-VA had a so-called “super note” aimed to cut €23 billion in expenses to get the derailed budget deficit back to 3 per cent of Belgium’s GDP and to provide room for some new policies.

According to the document, he wanted to achieve this through labour reform, pension reform and cuts in social security. Another change was a so-called ‘solidarity contribution’ (tax) for those earning more than €6,000 annually on shares.

Unions were outraged about the plans and promised action, raising pressure on Conner Rousseau, President of the Flemish Socialist Party, who is taking part in the coalition talks.

De Wever’s super nota was apparently partly inspired by European Union pressure, which demanded that the country had its economics in order and in June last year had triggered an excessive deficit procedure against Belgium.

He had reportedly assumed that Belgium would have seven years to get the budget deficit within required bounds. If the EU disapproved the efforts, that time period could be reduced to four years.

Defence, in particular, was problematic because Belgium has been downsizing its army for decades and contributed among the lowest levels of GDP to NATO among member states.

US President Donald Trump has already demanded allies, including Belgium, pay 5 per cent.

De Wever was aiming to have spending cuts of €3.5 billion, but expected to generate extra income through resulting economic growth and higher purchasing power.

The intended reform looked likely to end life-long unemployment benefits, something highly sensitive to the Left.

On the Right, it has long been pointed out Belgium had the most expensive benefits system in the world, with people being able to enjoy relatively high unemployment benefits for life.

De Wever also proposed pension cuts for those who retired before the statutory retirement age and compensate that with a bonus for people who exceeded the retirement age.

Some special pension categories, such as military personnel or those who worked for public transportation, would be aligned with the normal system, which currently has a higher retirement age.

Under the proposals, public officials would lose many of their advantages, privileges and higher pensions, while a number of measures to curb employees with long-term illness were also contemplated.

On the income side, De Wever suggested some higher taxes, especially regarding stocks and shares but also air travel.

Even the King of Belgium would be hit and, under the plans, would receive €2 million a year less in taxpayers’ money by 2029.

The Senate of Belgium, an institution that has became obsolete over time, would finally disappear in full as well, saving some extra money.

MPs would be paid less and former ministers would lose some benefits.

Annual reductions in government personnel and operating resources would amount to 2 per cent, with the exception of security departments. Additionally, diplomacy was set to become “more efficient”.

Federal government grants were also under review. The development co-operation budget would be reduced by a quarter and federal science policy will face budget cuts as well, under the proposals.

The Beliris investment fund, which finances projects in the capital, would receive fewer resources.

Funding for certain prestige projects — such as the renovation of Brussels’ Cinquantenaire Park for Belgium’s 200th anniversary —  would also be scaled back.

Additionally, savings would be implemented at Belgian Post Group (Bpost) and the national railway company SNBC, contributing to a predicted total saving of around €1 billion.

These measures did not seem to have impressed the unions, who were outraged when the note leaked and said they would protest on February 13.

They claimed politicians had lied to them and that the people would lose purchasing power.

Another element of the leaked note was a set of proposals regarding migration.

Experts called it “the most strict policy ever” in Belgium, comparing it to the one in the Netherlands, where the party of the hard-right Geert Wilders is in government.

Asylum seekers would only be able to get shelter in collective centres, where they would only receive “strict material shelter”.

They would also lose their weekly allowance.

If asylum seekers appealed decisions, they would be forced to leave the shelter. During the procedure, their mobile phones and tablets would also be examined, to detect possible fraud.

Belgium would adhere more strictly to the Dublin Regulation, a set of rules that determined which country was responsible for processing an asylum application.

“Temporary border controls” in case of “exceptional circumstances” were also on the table.

Migrants who wanted to enjoy social welfare and unemployment benefits should have had five years of continuous, actual and legal residence in Belgium, under the plan.

These changes in migration should save Belgium €1.6 billion, the paper claimed.

The total package being negotiated has not been agreed upon as yet.

As of January 24, 2025, Belgium has been without a federal government for 229 days.