VBO sounds alarm over pensions 04/09/2007 00:00

4 September 2007

BRUSSELS - The Association of Belgian Enterprises (VBO) is calling for cutbacks in pension schemes. “Difficult times are awaiting us if we only make cuts in areas that have nothing to do with the costs ensuing from the ageing population,” Rudi Thomaes, a VBO executive, warns.

Although it might take weeks if not months before a new federal government is formed, the VBO already calls on the future government coalition in Brussels to look into possibilities to curb the costs of a growing elderly population.

The employers’ organisation is pointing out the urgent need to curb the pension costs. ‘Just as we try and keep health care expenditure below 3 percent, similar measures should be taken to rein in the pension costs. “No more taboos,” Thomaes commented.

The largest employers’ organisation made this statement following a number of alarming reports from the High Council of Finance (HRF). The council calculated that in the coming years billions of euros are needed to cushion the costs of the ageing population.

In budgetary terms:  the new federal government will need to ensure a budget surplus of 1.1 percent in 4 years’ time.

[Copyright Expatica News 2007]

Subject: Belgian news