Belgium wealth tax proposal sparks coalition clash

Centrist party Les Engagés has put forward a proposal to levy a wealth tax on individual net assets exceeding €500,000, arguing that a "reasonable contribution" from the wealthiest households could help address Belgium's federal budget deficit. The measure, still pending legislative text, targets high‑net‑worth individuals and has drawn immediate resistance from coalition partner Mouvement Réformateur (MR).

MR leader Georges‑Louis Bouchez rejected the proposal, calling it "a madness" and emphasizing that the state should reduce spending rather than increase taxes on capital. The debate highlights a broader tension within the Belgian coalition over fiscal consolidation, with implications for investors, wealth managers, and corporate treasuries concerned about potential capital flight and regulatory uncertainty.