Live Politics Update.. Brussels Talks End, Sven Gatz Unveils Bold Budget Reform Plan

Brussels Talks End: Sven Gatz Presents Bold Budget Reform Plan

Sammy Mahdi urges a summer agreement on lastenverlaging, aiming to boost work incentives and finalize tax reforms before the July 21 deadline.
Marie Dupont4 July 2025Last Update :
Live politiek | Brussels overleg afgelopen, Sven Gatz (Open VLD) werkt voorstel uit voor begrotingsingrepen
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The upcoming agreement on the Belgian federal government’s plan for lastenverlaging (tax burden reduction) is set to be finalised before 21 July 2025-07-04 15:34:00. CD&V chairman Sammy Mahdi emphasises that this measure is crucial for boosting competitiveness and improving purchasing power across Belgium. After recent reforms on unemployment benefits and capital gains tax, Mahdi insists that lowering the tax burden on labour must be the government’s next priority.

6 Key Takeaways
  • Federale regering moet lastenverlaging akkoord bereiken
  • Hervorming werkloosheidsuitkering en meerwaardebelasting afgerond
  • Lasten op arbeid verlagen als volgende prioriteit
  • Regering-De Wever moet belastinghervorming finaliseren
  • Verlaging lasten vanaf januari 2026 ingevoerd
  • Verhoging belastingvrije som en sociale bijdrage afgeschaft

Mahdi also highlights that the tax reform deal, part of the De Wever government’s agenda, aims to increase the gap between working and non-working incomes by at least €500. This will be achieved by raising the tax-free allowance and removing the special social security contribution, with planned implementation starting from January 2026. But how soon can Belgians expect to feel these changes, and will the government stick to its timeline?

With the summer recess approaching, the pressure mounts to ensure the lastenverlaging agreement is secured in time, signalling a critical moment for Belgium’s economic future.

Fast Answer: Belgium’s federal government aims to finalise a lastenverlaging deal by 21 July, targeting tax relief on labour to boost purchasing power and competitiveness starting January 2026.

What does this mean for Belgian workers and employers? The focus on lastenverlaging reflects a clear government commitment to make work more rewarding compared to unemployment. This approach could stimulate job growth and economic activity, but some questions remain:

  • Will the planned €500 income gap be sufficient to motivate more people into the workforce?
  • Can the government maintain the timeline amid other political priorities?
  • How will the phased implementation impact short-term household budgets?
This tax reform is a key part of Belgium’s broader strategy to improve labour market competitiveness and address cost-of-living concerns ahead of the next legislative period.

As negotiations unfold, Belgian citizens and businesses should stay informed and engaged. Will the government deliver on its promises before the summer break? The coming weeks will be decisive for Belgium’s economic landscape and the future of work incentives.

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