Belgium: "Social Security must tighten its belt as well”

21st September 2009, Comments 0 comments

Budget Minister Guy Vanhengel (Flemish liberal) says that the government will not continue to fill the budget deficit in the social security system.

The social security system should also make an effort to fill the gap, said the federal budget minister in an interview with the financial daily De Tijd.

Until now the deficit in the social security system has always been covered for by other tax money. The Budget Minister Guy Vanhengel said that it is now time for this practice to stop.

According to Minister Vanhengel, the Stability Pact, which the government agreed to earlier in the week, will put an end to the automatic replenishment of social security.

It is not yet certain exactly how much the social security system will have to save. 

The discussion with the federal government promises to be contentious. The Flemish liberals have always disliked the fact that the social security system swallows up an increasingly large chunk of tax income. 

The Francophone socialists do not want to touch health care, unemployment benefits or pensions in the tightening of the budget belt.

0 Comments To This Article