Meanwhile, Belgium’s politics received some much-needed cohesion now that the five-party coalition government of the country’s Prime Minister, Bart De Wever, has come to terms on its multi-year budget. This comes against the backdrop of strike action by the whole nation in protest of the government’s austerity measures. This is despite the government being in the middle of negotiations for its multi-year budget.
Coalition members bridge the divide on financial provisions
The budget deal offers considerable government savings and sources of funding through measures such as the enhancement of the value-added tax rate and higher taxes on investments. Deputies from different parties in the coalition met at De Wever’s home on Sunday morning. Socialists Vooruit’s federal spokesperson Frank Vandenbroucke and Les Engagés spokesperson in the regions Maxime Prévot participated in the decisive meeting.
Budget Minister Vincent Van Peteghem also emphasized the significance of coming to a reasonable agreement that would ensure certainty. Flemish Christian Democrats are optimistic about the good progress being made in reaching the agreement. However, many obstacles still need to be overcome in regards to measures that are much disputed, especially on the proposed increase in general VAT.
Strike actions heighten pressure on government negotiations
Belgium was hit by coordinated strikes for three days in protest against the government’s plans to cut expenses. Transport strikes on Monday disrupted train services in Belgium, with the national train operating company SNCB running one or two out of every three trains. Also cancelled were some train runs from Brussels to Paris by the international company Eurostar.
Strikes entered the realm of public services like schools, childcare institutions, and hospitals on Tuesday. However, on Wednesday, the strike was inclusive of the whole spectrum of work. There would be no flights operating at Brussels Airport (Zaventem) or Charleroi on the day of the general strike. This was the most decisive stand from the unions against De Wever’s structural plans for the future in the areas of the labor market, social security for the unemployed, and retirement provisions.
“This is an appeal to Prime Minister De Wever and the entire government to put an end to the dismantling of social programs,” the unions stated in a press release. The socialist union FGTB accused the Prime Minister of showing “contempt” and “disrespect” towards the social movement.
Economic pressures make for difficult political compromises
Belgium’s administration, headed by Prime Minister De Wever, must work on lowering its national debt. Belgium’s national debt is also one of the top in the European region, along with Greece’s, Italy’s, and that of France. According to the Prime Minister’s report, “everyone is going to feel some of the impact of what we are asking for.” However, the administration is having trouble implementing its proposed plans because of the split in the government’s governing coalition.
It aims at mobilizing finances for spending on the military while at the same time resolving the fiscal issues in Belgium through structural reforms that are the largest in history. Members from the liberal MR party, including Federal Minister David Clarinval, have been strong opponents of rising VAT rates but also made positive contributions to the negotiations. Also pushing for the deal is the Christmas deadline for reaching an agreement between coalition parties.
This budget agreement in Belgium represents an important moment in the pursuit of budget stability in the region. However, much work remains in terms of the implementation of the budget plan in the wake of intense and widespread social protests. It is a challenge for the government to reconcile the implementation process of the budget plan within the context of social resistance.
