Belgium's new coalition government is taking bold stances on both foreign policy and domestic economic issues as it looks to strengthen the nation’s future.
Formed after eight months of negotiations, the coalition serves as a response to both internal and external challenges facing the country. The newly established government has officially released its 209-page agreement, titled “Federal Coalition Agreement 2025-2029,” proposing firm policies shaped by five diverse political parties.
A significant highlight from this agreement is the coalition's strong condemnation of human rights abuses and women’s rights violations by the Iranian regime. The document states, "The Iranian regime actively seeks to weaken the West and our way of life. We are creating stronger defenses to confront this threat, collaborating with our allies to support the Iranian people's aspirations for democracy," indicating Belgium's commitment to uphold human rights standards globally.
The coalition has urged for the Iranian Revolutionary Guard to be classified as a terrorist organization and for the implementation of stringent economic sanctions against the regime. This alignment with broader European Union measures signifies Belgium's readiness to play its part on the international stage.
Belgium’s new Prime Minister, Bart De Wever from the New Flemish Alliance, leads this coalition, which includes two French-speaking parties along with three Dutch-speaking parties. Notably, the deal excludes the Green and Socialist parties from the coalition, highlighting the complex political scenario within the country.
On the economic front, the Belgian stock market saw declines by the end of Thursday trading, reflecting broader sectoral weaknesses. The benchmark index, Belgium 20, dropped by 0.02%. Noteworthy movements included Melexis NV, whose stock surged by 3.60%, indicating strong investor confidence. Conversely, Ageas SA saw one of the largest declines, dropping 1.54%. This mixed performance showcases the fluctuative nature of the current economic climate.
While the stock market exhibited volatility, another pressing issue is the inadequacy of Belgium's pension system. Current retirement benefits average only 45% of the final salary, below the OECD average of 54%. This unsustainable system has sparked calls for reform, particularly to bolster the retirement savings through employer contributions.
Pension expert Bensio Plass highlighted the government's plans to include all workers in the supplementary pension scheme by 2035, mandatorily requiring employer contributions of at least 3%. This plan aims to address the glaring gap as many retirees struggle to meet their financial needs. Currently, the average net pension for employees ranges from 1,200 to 1,500 euros monthly, whereas individuals aged over 65 require about 2,400 euros to cover their living expenses effectively.
Given the disconcerting statistic of only 10% of Belgians possessing sufficient savings capacity, the need for systemic change is urgent. The proposed supplemental pension system promises to increase average pensions to align more closely with OECD standards, possibly adding around 150 euros to retirees' monthly income.
For employers, implementing the 3% contribution system, which is tax-exempt, could incur annual costs of approximately 1.5 billion euros. Nevertheless, this expenditure is deemed necessary by proponents to secure financial stability for future retirees.
This multifaceted approach, addressing both international policies on human rights and local economic strategies, marks an ambitious path for Belgium's newly formed government. These developments indicate not only the coalition's priorities but also its attempts to navigate through current economic uncertainties and promote social welfare.
Belgium stands at a crossroads. The governments’ efforts to reorganize their political and economic frameworks will determine the nation’s resilience and stability amid global pressures as well as domestic challenges.