Belgium approves pension reform and debates social spending

The Belgian Parliament has officially approved a pension reform law, introducing a bonus-malus system designed to encourage longer working lives. Under this new system, individuals who continue working beyond the legal retirement age will receive a pension bonus. Conversely, those who retire early without completing a 35-year career will face a penalty. The financial impact starts at 2 percent per year, increasing to 4 percent in 2030 and 5 percent in 2040.

In a separate political development, Socialist Party (PS) chairman Paul Magnette has called for wage and pension increases to restore citizen purchasing power. Magnette criticized the federal government's current austerity approach, arguing that the burden falls disproportionately on retirees and the workforce. To fund these social priorities, he proposed slowing the pace of defense spending and implementing targeted wealth taxes to close fiscal loopholes.