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Belgium Adopts Programme Law Amidst Parliamentary Turmoil, Limited Wage Indexation
🇧🇪 Belgium /Elections & Politics

Belgium Adopts Programme Law Amidst Parliamentary Turmoil, Limited Wage Indexation

From La Libre Belgique · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Outcome reported
  • Belgium's "programme law" was adopted after a chaotic parliamentary process, with the budget initially under provisional twelfths.
  • A key measure, the limited indexation of wages, faced significant opposition from social partners and caused parliamentary friction.
  • Other measures, like increased excise duties on gas and reduced duties on electricity, were postponed due to the energy crisis, while a TVA reform was shelved after public backlash.

Belgium's "programme law," a crucial piece of legislation typically passed at year-end, finally saw adoption following a tumultuous parliamentary journey. The coalition, operating under the "Arizona" moniker, was forced to begin 2026 using provisional twelfths due to delays in budget agreement. The budget itself was eventually adopted, but the associated programme law faced a more complex path.

Chaos in the Chamber: the programme law is postponed again, as is the partial indexation of wages.

— La Libre BelgiqueThe article's headline highlights the parliamentary difficulties surrounding the programme law and wage indexation.

The legislative process was marked by "chaos in the Chamber," including multiple readings and referrals to the Council of State. A central point of contention was the mechanism for limited wage indexation, often referred to as the "index in centimes." This measure proved unpopular with both social partners and within parliament, leading to significant friction.

Social partners, in a rare display of unity, had advocated for an alternative system. However, the government rejected this, citing concerns about its budgetary impact. Minister of Social Affairs Frank Vandenbroucke expressed opposition to revisiting the issue in future budget discussions, though some parties, like the MR and CD&V, remain open to it.

In a rare unanimous opinion, the Group of 10 had advocated for another system but the government did not want it, particularly because it does not guarantee, according to him, the expected budgetary yield.

— La Libre BelgiqueThis quote explains the government's reasoning for rejecting the social partners' proposed alternative to wage indexation.

Further complicating the law's passage were other significant measures. An increase in excise duties on gas, coupled with a reduction on electricity, was postponed until August 1 due to the ongoing energy crisis, exacerbated by geopolitical tensions. Additionally, a proposed reform of the Value Added Tax (TVA) was withdrawn following widespread public criticism regarding its complexity, with new discussions planned for later in the year.

The government has postponed the measure, which was supposed to enter into force on April 1, until August 1.

— La Libre BelgiqueThis refers to the postponement of the excise duty changes on gas and electricity.
DistantNews Editorial

Originally published by La Libre Belgique in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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