On Monday morning, following a night of negotiations, the Belgian Council of Ministers reached an agreement on a series of pension reform measures, as announced by the spokesperson for

the prime minister.

These measures have been implemented to enhance the financial sustainability of the pension system, which is a requirement set by the European Union. Belgium was previously unable to access €850 million in aid from the European recovery fund until it demonstrated its commitment to pension reforms.

The agreed-upon measures encompass various changes aimed at achieving savings. One of the measures involves implementing a cap on the mechanism through which civil servants' pensions increase in line with salaries. Additionally, a higher social security contribution will be imposed on high supplementary pensions. Furthermore, the pension bonus for individuals who do not opt for early retirement will be reduced.

According to Prime Minister Alexander De Croo, the pension deal incorporates reforms totaling three billion euros. This new package complements the measures that were agreed upon in the summer of 2022, as well as the austerity measures included in the March 2023 budget review.

Pensions Minister Karine Lalieux stated that the agreement is "balanced and fulfills the commitments of the coalition agreement." Collectively, these measures are expected to reduce Belgium's aging costs by 0.5 percent of GDP by the year 2070.

Prime Minister De Croo and Minister Lalieux are scheduled to outline the details of the agreement during a press conference on Monday at 11:00. Photo by Center for Data Innovation, Wikimedia commons.