VRT political editor Ivan De Vadder notes that all parties in the 5-way federal coalition government have something to be proud of in the new budget accord. Opposition parties and the unions are less enthusiastic.
The Communist Labour Party has called for resistance. The PVDA takes issue with the changes to the index system that means wage earners on over 4,000 euros gross a month and seniors on pensions over 2,000 euros will no longer enjoy full compensation for inflation rises. 4,000 euros gross is below the average wage. 2,000 euros gross is the average pension PVDA leader Raoul Hedebouw (pictured) notes.
For the far right Vlaams Belang it’s above all hard-working Flemings, who are paying the bill. The De Wever government is not dealing with the migration bill, the problems with the political system or development aid. Vlaams Belang accuses the 5-way coalition of administrative inefficiency.
Flemish ecologist Groen: ‘First step in dismantling the index’
For the opposition party Groen, the budget agreement confirms the fact that ordinary people are bearing the brunt of efforts, while the wealthiest are hardly being asked to contribute.
Floor leader Stefaan Van Hecke believes that a first step has been taken in dismantling the index, the mechanism that provides automatic top-ups in line with inflation for many wages and all benefits. "At the start this government made substantial cuts to the lowest pensions and benefits, and government parties were already taking money out of ordinary people's pockets.
This second round comes on top of that,‘ says Van Hecke, referring, among other things, to the increase in VAT on various products and more expensive healthcare. ’It seems to be a matter of honour for the government parties to push people into poverty instead of lifting them out of it."
‘Government solves problems by raising taxes’ says Flemish liberal leader De Gucht
The Flemish liberals of Open VLD have welcomed a federal budget agreement, but at the same time the opposition party hopes that ‘reforms that our economy so desperately needs will be implemented in time,’ an Open VLD press release reads.
‘It is particularly painful that almost half the effort is being made through tax increases on people who work, save and do business, instead of through government savings,’ says leader Frédéric De Gucht.
Open VLD says it supports various socio-economic measures in the agreement. ‘Think of the approach to the long-term sick and the implementation of reforms from the summer agreement,’ says floor leader Alexia Bertrand.
‘A lot has been announced: relaxation of restrictions on night work, flexi-jobs in all sectors, more overtime... We are very curious about this and are eagerly awaiting the concrete details.’
Unbalanced agreement, say the trade unions
Belgium’s 3 big unions, Christian ACV, socialist ABVV and liberal ACLBV label the deal an ‘unbalanced’ budget agreement. They criticise the fact that a large part of the bill will be footed by employees. The unions are particularly unhappy that automatic wage indexation will no longer apply in full to wages above 4,000 euros.
‘The government claims that the index has been saved, but that is not the case,’ says An Vermorgen of Christian ACV. ‘More than half of employees will have to make two sacrifices as a result of the index reform. In addition, gas is also becoming more expensive, as is the patient's contribution in health care. There is an imbalance hitting employees.’
Socialist ABVV agrees: ‘This budget agreement offers no prospects,’ it says in a press release. ‘The De Wever government has secured its budget agreement, but once again it is clear who will foot the bill: the people who go out to work every day, the people who are ill, the people who have worn out their bodies.’
Liberal trade union ACLVB argues that the changes to the index system – the automatic topping up of many wages and all benefits in line with inflation - is equivalent to a wage cut. ‘The fact that half of the non-indexation ends up in the pockets of companies, supposedly to strengthen competitiveness, reinforces the feeling that employees are once again footing the bill.’