Brussels: Europe and the Arabs
The Belgian government coalition succeeded in overcoming a crisis that could have caused a great spiral in which the country might enter. It is related to the pension file and the need to respond to European requirements in this regard.
After a night of negotiations, the prime minister's spokesman announced that the Belgian cabinet had approved a series of pension reform measures on Monday morning.
The agreed measures amount to savings to improve the financial sustainability of the pension system, which is a requirement of the EU. Belgium was prevented from receiving 850 million euros in aid from the European Recovery Fund until it agreed to pension reforms.
According to the Belgian news agency, the measures include capping the mechanism by which civil servants' pensions are increased with salaries and a higher contribution to social security for higher supplementary pensions. The pension bonus will also be reduced for people who do not opt for early retirement.
The pension deal includes €3 billion worth of reforms, according to Prime Minister Alexander de Croo. The new package complements measures agreed in the summer of 2022 and austerity measures included in the March 2023 budget review.
Pensions Minister Karen Laliu said the deal was "balanced and fulfills the obligations of the coalition agreement". Combined, the measures are expected to reduce the cost of aging in Belgium by 0.5 percent of GDP by 2070.