Ministers David Clarinval, Mathieu Bihet and Eléonore Simonet, the three Mouvement Réformateur ministers in charge of socio-economic matters within the federal government, presented 17 priority measures to employer representatives (FEB, AKT, Voka, UCM and Unizo) this Wednesday to boost Belgian growth and competitiveness. This plan, which incorporates employers' feedback, aims to sustainably revive wealth creation, employment, investment and productivity in Belgium. The ministers will defend the measures of this plan at the government table during the budget conclave.
Faced with a slowdown in Belgian potential growth, expected at 1.1% in 2029 compared with more than 2.6% in the early 2000s, and an additional budgetary effort estimated at €10 billion by 2029, the federal government has chosen to jointly address the consolidation of public finances and support for economic growth. Within this framework, the three liberal ministers have developed a strategy of around 80 measures across eight axes. Today, they presented the 17 priorities, 7 “quick wins” and 10 medium-term measures to employer representatives. Measures that will boost Belgian GDP growth by 0.5% by 2029 and generate an additional €1.5 billion for the federal budget (entity I).
Among the “quick wins”, the plan includes an exemption from payroll withholding tax for strategic sectors. Employers active in chemicals, pharmaceuticals, agri-food, defence, digital and space should be able to benefit from a partial exemption from paying over payroll withholding tax, at an estimated budgetary cost of €250 million per year and around 25,000 expected new jobs.
Another effective measure concerns a 12% VAT rate on new buildings. This reduced rate, targeted at homes with a maximum surface area of 200 m², should lower the price of a new home and revive activity in the construction sector, with an expected increase of more than 20% in the number of new builds according to available estimates.
Also, a freeze on VAT and excise duty rates on energy products. Immediately applicable, this measure guarantees that there will be no new increase in taxation on electricity, gas, heating oil and fuels, giving households and businesses medium-term visibility on their energy costs.
Other “quick wins” include a simplification shock, with an effective end to gold-plating when transposing European directives, the generalisation of the “Only Once” principle preventing the administration from asking again for data it already holds, and a package of administrative simplification measures for SMEs. There is also a boost to the energy standard, namely its effective implementation, particularly in its regional dimension via CISAF, in order to reduce electricity prices for energy-intensive SMEs. The plan also provides for stability and long-term visibility on tax measures. Finally, an extension of flexi-jobs to the self-employed will allow them to generate supplementary income when their main activity declines or remains weak.
Among the ten medium-term measures are an increase in employer social contribution reductions from 2027, the continuation of labour market reform, and the rollout of MAKE 2025-2030. The plan also provides for a savings product aimed at directing household savings towards the real economy, as well as a multi-year investment programme for climate and economic resilience, aimed at strengthening critical, energy, industrial, agricultural and forestry infrastructure against shocks. For SMEs, the plan focuses on business transfers, with a matching platform for transfer and takeover, an increased deduction of 120% for transfer costs, and a new tax regime, the SME Innovation Box, allowing innovative SMEs to deduct up to 40% of their income from non-patented innovations.
The MR also insists on the consolidation of major social spending items, with the transfer of management of medical advisors to INAMI from 2027 and strict regulation of atypical medical certificates. The plan also aims for a stronger European internal market, through accelerated reforms in services, energy, telecoms and financial markets, as well as simplified procedures for accessing European funding. Finally, the revival of nuclear power relies on the Aurora project as the foundation for a long-term nuclear capacity of at least 4 GW. Artificial intelligence also plays a major role, with the strengthening of AI infrastructure and skills: supercomputers, networks and dedicated data centres, as well as an upskilling and reskilling plan, for an estimated potential of €45 to 50 billion in additional GDP over the decade.
An invitation to dialogue with economic partners
This meeting with employer federations reflects the three ministers' wish to involve economic actors in implementing the strategy, which aims to raise Belgian GDP growth above that of the main neighbouring countries by 2029.
This growth plan will be put on the government table as part of the budget conclave, to make it the cornerstone of the budget.
David Clarinval, Deputy Prime Minister and Minister of Employment, Economy and Agriculture: “Growth is an essential element if we want to sustainably consolidate our country's budget. It is growth that feeds our social security and our pensions. This is an issue that particularly concerns me and that I want to bring to the government table. That is why, together with my colleagues, we have shaped a growth plan in dialogue with employers, with priority measures to boost the Belgian economy, employment and competitiveness.”
Mathieu Bihet, Minister of Energy: “There can be no lasting recovery of our economy without growth, and no growth without reliable and competitive energy. From the moment I took office, I committed to making the energy standard a concrete response to this urgency: reducing electricity prices now for our most energy-intensive companies most exposed to international competition. But the challenge goes beyond immediate urgency. We must also prepare for the future, by supporting the electrification of our economy and guaranteeing our companies access to the energy they will need to invest, produce and grow here in Belgium. Competitive, abundant and secure energy is a condition for our growth and our reindustrialisation. Creating these conditions is precisely the purpose of my action.”
Eléonore Simonet, Minister for the Self-Employed, SMEs and the Middle Classes: “There will be no growth without our SMEs. As the main provider of private employment, they are at the heart of our economy and will play an essential role in reaching our goal of an 80% employment rate. Our priority is therefore clear: to give them room to breathe, by removing unnecessary procedures, simplifying the rules and giving them more opportunities to hire and grow. That is precisely the point of the simplification shock we are launching, of the reform of the stock-option system to make it more attractive for innovative companies, of extending flexi-jobs to the self-employed, and of our work on the issue of business transfers.”