“Revitalizing Employment: Transfer Payment of Unemployment Benefits to Regions After Two Years – Solution Proposed by FEB Managing Director”

2023-05-18 11:05:49

This Wednesday, the managing director of the FEB (the Federation of Belgian Enterprises) Pieter Timmermans was the guest of “QR the debate”.

On the set, the managing director shared a solution which, according to him, would make it possible to revitalize the employment rate at no additional cost to the State after two years without employment: transfer the payment of unemployment benefits to the regions after two years without a job: To get out of the impasse, il need growth”, he says. “Listening to the political positions in recent days, I have the impression that we are first trying to spend the money that we do not have. I think we have to split social security.”

Two solutions are then available: the vertical or horizontal split. “Splitting social security vertically would mean separating the country”he says. “You have to adapt the reasoning and think of more horizontal structures. Interpersonal solidarity.” So, “For two years, you would be covered by social security and solidarity. Then the regions could play a tailor-made role.”

According to him, 70% of the current unemployment envelope is used to compensate unemployment for less than two years. “The remaining 30% is for unemployment for more than two years. Why wouldn’t we transfer this 30% to the regions which would use this sum to invest in their activation policy? They could continue to spend through allowances or whatever, it would be the freedom of the region.”

N-VA MP Theo Francken sees this as a good solution: “It is an offer careful and interesting”, he declares. “In Flanders, unemployment ends after two years. The budget that we receive for unemployment of more than two years will be used for training or re-education.”

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