Understanding Belgium’s government negotiations: Lifelong unemployment

If negotiations stay on track, Belgium will have a new government very soon. The issues that could derail the talks have some specific Belgian characteristics. Belga English looks at some of those issues. Today, life-long unemployment.

Belgium is proud of its system of social security. It’s not perfect, but in general, Belgian citizens are well protected in case of unemployment, sickness, retirement and so on.

However in the case of unemployment, many feel the protection is too good. Contrary to other countries, Belgians can get an unemployment benefit without limitation on the duration. Life-long unemployed are an exception, but they do exist.

On top of that, people who are unemployed often have access to other social benefits that working people are excluded from. On top of their allowance come other financial rewards. This leads to what is called the unemployment-trap. People are trapped in unemployment because finding a job would cost them money, on balance.

All at work

This situation is in sharp contrast with the ambition of the political parties negotiating the formation of a new government, under the leadership of Bart De Wever (N-VA). More people at work is a top priority for them. Working people pay more taxes and get fewer allowances, compared to unemployed people. For a government that has to solve a large budget deficit, this is a big difference.

The most important change on the negotiating table is a limited duration of unemployment. Unemployed people would lose their allowance after two years. In the first couple of months of their unemployment, the allowance would be higher to help them search and prepare for a new job. But after those first months, the amount would decrease, to disappear after two years.

To make sure working is financially much better than being unemployed, the new government would also put limits on the allowances an unemployed can get. Some allowances would no longer be fully adapted to inflation, which reduces their value over time. Combining different allowances and advantages would also be limited.

It’s unclear how much resistance against these changes will come from trade unions. The situation is different in Flanders compared to the rest of Belgium. In Flanders, unemployment has become very limited, with only a couple of per cent of all working-age people. In the south of Belgium, more people are unemployed. Many have been for many years.

_{© BELGA PHOTO SOPHIE KIP}