Brussels: Europe and the Arabs
In a session that lasted until dawn on Saturday, the Belgian Parliament, in a historic moment, approved a limit on the duration of unemployment benefits. According to what the Belgian Minister of Immigration and Integration wrote on the Ax website this morning, she added, "Because we want to encourage people to participate, rather than leaving them on the sidelines for years. We are working behind the scenes on a compensation plan that will absorb the impact on people and local authorities as much as possible, also with regard to work pressures." According to Anneleen Van Bossuyt, Minister of Asylum, Immigration, Social Integration and Metropolitan Policy.
The Belgian news agency reported that after a 15-hour debate, the restriction on unemployment benefits was approved at the specified time in the House of Representatives committee. She explained, "The Social Affairs Committee of the House of Representatives gave its approval to the restriction on unemployment benefits at the specified time this morning around 4 a.m., after a debate that lasted approximately 15 hours. This represents the first hurdle, as the committee now has to conduct a second reading, and then the full House of Representatives must approve the proposal."
The Social Affairs Committee discussed the federal government program law last week, specifically the labor law. The most important reform the government is seeking to implement is the unemployment benefit reform. If all of its provisions are voted on in time, the benefit will no longer be unlimited, but will be limited to two years as of January 1, 2026.
After consultation with the regions, social partners, and Belgian migrant and refugee workers' organizations, the reform will initially apply to approximately 25,000 people who have been unemployed for more than 20 years. Starting March 1, it will apply to 42,500 people who have been unemployed for more than eight years, and on April 1, it will apply to another 45,000 people.
A second batch of 60,000 people will follow on July 1. 180,000 Belgians will lose unemployment benefits next year, saving nearly €2 billion.
The government has exempted several categories of unemployed people. This includes unemployed people who resume at least part-time work and receive income security benefits. Artists retain their special status and unemployment system.
For a while, it seemed as though the Chamber would have to suspend consideration of the bill. The Brussels Community Joint Committee feared that it would burden temporary workers' organizations (OCMWs) due to many unemployed people relying on the minimum income and filed a conflict of interest complaint. However, this was deemed unacceptable after the Chamber's analysis.
In the Chamber, the Minister of Labor, Clarinval (MR), explained that there would be a data exchange system between the Regional Development Authority (RVA), the regions, and the OCMWs. He also promised that financial compensation for OCMWs would be "substantial and adequate" "starting in 2026," without providing further details.
Value Added Tax
The reform must now be voted on in second reading, and then by the full Chamber. The goal is to do so before the summer break. On Tuesday, the financial part of the program law was approved by the relevant parliamentary committee. According to the law, the reduction in temporary unemployment will only come into effect after the government issues a royal decree. At the request of the majority party, Voroit, this reform has been linked to the capital gains tax on financial assets. The government is still discussing the final form of this reform. Incidentally, the labor-related part of the program law is not limited to reducing temporary unemployment. For example, the bill also provides for the right to four months of parental leave for long-term custodial parents, effective July 1.