Belgium urgently needs to reform its pension system. The Planning Office recently warned of a potential “Greek” scenario, and the IMF and national bank have also sounded the alarm. Fifty economists have declared that Belgium’s public finances are unsustainable. However, Minister of Pensions and Social Integration Karine Lalieux assures that pensions will never be a budgetary variable and emphasizes the need for financial and social sustainability in the pension system. She believes increasing employment rates and productivity, as well as investments, are the key to paying pensions in the future. Lalieux urges against creating fear and scaring people.
The pension reform is long overdue here in Belgium. Last Monday, in the Chamber, the Planning Office raised the specter of a “Greek” scenario. Georges-Louis Bouchez (MR) took the opportunity to add a layer of it in the press by declaring that “without European beacons, Belgium would already be Greece without feta, sun and sirtaki.” And many institutions are sounding the alarm; the Planning Office therefore, but also the IMF, the national bank. Fifty Belgian economists have declared that our public finances are on an unsustainable trajectory.
So, should we worry about our future pensions? Guest of Pascal Vrebos, Karine Lalieux, Minister of Pensions and Social Integration, was firm. “Pensions and pensioners will never be a budgetary variable. Every worker is a pensioner of tomorrow. But I am concerned about public spending and I also want to ensure that there is financial and social sustainability in the pension system.” And the Minister to continue: “How do we pay them pensions tomorrow? Not by creating fear or by saying that we will pay more pensions, but by increasing the employment rate. Did you see the results today? We have never had so many Belgians employed today. That’s what will pay the pensions. Increased productivity and investments. Stop scaring people!”
In conclusion, the pension reform is a pressing issue in Belgium, with warnings from various institutions sounding the alarm. The possibility of a “Greek” scenario looms, but Minister of Pensions and Social Integration, Karine Lalieux, remains firm that pensions and pensioners will never be a budgetary variable. The solution lies in increasing the employment rate and promoting productivity and investments, not in creating fear. It is important for the government and society as a whole to work towards ensuring financial and social sustainability in the pension system for the benefit of all workers and future pensioners.