The Belgian federal government, led by Prime Minister Bart De Wever, recently presented its ambitious summer agreement, with reforms in pensions, the labour market, and taxation. Belgian Kevin Spiritus, Associate Professor at Erasmus School of Economics, is clear about it in an interview with the leading Flemish weekly Knack: ‘Giving everyone 100 euros net more is completely irresponsible.’
Not a purchasing power problem, but a budget problem
Spiritus, who lives and works in Rotterdam, is critical of the new government's budget policy. ‘Right now, there's no purchasing power problem at all for the general population. The problem is that this government is handing out money that isn't there. That will only make the pain worse in a few years,’ he says. According to Spiritus, Europe will eventually intervene if Belgium doesn't get its spending under control.
Spiritus also has reservations about the pension reform. He finds the so-called pension penalty, which imposes a 5% monthly reduction on early retirement, justifiable. ‘But it becomes unfair when people with long and healthy careers are allowed to retire without penalty, while the chronically ill, who statistically have shorter lifespans, are doubly penalised.’
Cautious optimism about labor flexibility
Spiritus's stance on labour market flexibility measures is more nuanced. He sees advantages in extending shop opening hours, as is already common practice in the Netherlands. ‘I'm fine with supermarkets in Belgium being allowed to stay open until nine o'clock.’ Yet, his overall assessment of the government's financial policy is scathing. ‘The deficit needs to be reduced in a controlled manner, without drastic cuts, but right now we're heading in the wrong direction.’
According to Spiritus, fiscal hypocrisy is also on the table. He calls the new capital gains tax ‘shambolic’ and full of exceptions, such as the generous exemption for shareholders with a substantial interest. ‘Belgium excels in favouring family businesses. Not because of economic logic, but because of lobbying. We don't even know who's at the negotiating table.'
Government has hardly any financial leeway left
According to Spiritus, the federal government will have to creatively find new revenue streams, such as in the second pension pillar or from the self-employed, who, in his view, are paying too little social security contributions. But he warns: 'The federal government has little room left. If there is no second wave of reforms, Belgium will get into even more trouble.' With this strong criticism, Spiritus calls for more honesty, efficiency, and courage in budgetary policy. 'Popular measures must not come at the expense of future generations.'
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On July 21, 2025, the federal government of Belgium, led by Prime Minister Bart De Wever, reached a consensus on the summer agreement. The leading Flemish weekly Knack asked historian Philippe Destatte and economist Kevin Spiritus how fair this summer agreement actually is. Read the full interview above (in Dutch).
For questions, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl, mobile: +31 6 53 641 846.
