Belgium and France debate budget reforms and taxation

Political leaders in Belgium and France are debating various fiscal measures to address budget deficits and rising costs. In Belgium, parties are proposing diverse strategies to find 10 billion euros in savings. The MR party, led by Georges-Louis Bouchez, advocates for reducing the size of the state and public administration while avoiding new taxes on wealth or consumption. Conversely, Écolo, represented by Marie-Colline Leroy, suggests increasing contributions from high-income earners and large fortunes.

Regarding social policy in Belgium, Socialist Party (PS) leader Paul Magnette has pledged to reform the pension system if his party returns to power. He opposes the current plan to raise the retirement age to 67 for all, arguing that workers in physically demanding or high-stress professions should be able to retire at 60. He also aims to abolish the ‘malus pension’ mechanism that reduces benefits for early retirees.

In France, the Greens (Les Écologistes) have presented a counter-budget proposal. Their plan includes a 33% tax on the additional turnover of oil and gas companies to support households struggling with fuel prices. They also propose an exceptional 10% tax on inheritances exceeding 4 million euros and further increases for estates over 13 million euros.

Additionally, healthcare spending remains a significant budgetary concern in Belgium. Gross spending on medicine reached nearly 8 billion euros in 2024, with net costs for the National Institute for Health and Disability Insurance (INAMI) totaling 5.6 billion euros, marking a 6.6% annual increase.