Bart De Wever Suggests Changes to Improve Belgium's Economy

Brussels is under pressure to implement a significant savings plan of €28 billion by September 20, aimed at addressing its substantial budget deficit and national debt. The proposal, put forth by Bart De Wever, includes a dual approach of €14 billion from reforms and €14 billion from increased taxes or spending cuts. A key element of De Wever's strategy is the introduction of a 10% tax on investment profits, a move intended to tap into the €250 billion currently held in savings accounts, which Belgium does not currently tax. De Wever's tax reform plan also seeks to eliminate the tax exemption on the first €1,020 earned in interest from savings accounts, proposing instead a flat 30% tax on all income from term accounts and savings bonds. He argues that responsible savers should be allowed to earn up to €6,000 tax-free, while also suggesting that profits from investments should be utilized to offset tax debts. This approach aligns with Finance Minister Vincent Van Peteghem's earlier suggestions, indicating a potential shift in Belgium's fiscal policy. In addition to tax reforms, De Wever is advocating for labor profitability reforms aimed at increasing net wages and adjusting tax brackets to reflect real salaries. He has engaged with key political groups to discuss strategies for enhancing worker benefits and addressing the country's low employment rates. The proposed changes include reducing unlimited unemployment benefits and modifying tax structures to support underpaid workers. As Belgium grapples with these financial challenges, the urgency to present a comprehensive budget plan to the EU looms large. The government must balance the need for fiscal responsibility with the imperative to stimulate economic growth and improve employment rates, all while adhering to the EU's stringent demands for budgetary discipline.