Belgium's Federal Government is preparing one of its most significant welfare reforms in decades, aiming to curb what it sees as unsustainable spending on unemployment and sickness benefits.
From next year, it will no longer be possible to remain indefinitely on unemployment benefits, while people on long-term sick leave will face tougher medical checks to prove they are unable to work.
Belgium stands out in Europe for two reasons. First, jobseekers can currently receive unemployment benefits with no time limit. Second, the country has the highest proportion of long-term sick workers on the continent.
Both systems, Prime Minister Bart De Wever said, have allowed too many people to remain permanently outside the labour market, often at the expense of public finances.
Tightening up the rules
Under the government's plan, those who have been unemployed for more than 20 years will lose their allowance early next year. Gradually, the same rule will apply to anyone who has been jobless for more than two years, with only a few exceptions.
The aim is to encourage more people back into work and ease the strain on the welfare state. Those who still cannot find employment will have to rely on social assistance (CPAS) from their municipality, in the form of a smaller payment tied to stricter conditions.
"Without policy changes, the welfare state will collapse, not in my lifetime but in yours," De Wever warned students at Ghent University during an inaugural lecture on Tuesday.
In recent years, tighter unemployment rules have pushed some Belgians to switch from jobseeker's allowance to sickness benefits to maintain their income.
The number of people receiving such payments has surged past half a million in a country of just over 11 million people.
To stop that trend, the government will also tighten the rules on medical leave. Doctors will be asked to verify more rigorously whether patients are genuinely unable to work. Employers will be encouraged to prevent burnout and help staff return to work more quickly.
Health insurers, too, will be required to strengthen their checks, while those willing to work will receive better support.
'Unsustainable' spending
Belgium currently has more than 526,000 people on long-term sick leave, costing the state €9 billion a year.
The number is ballooning, and is expected to surpass 600,000 by 2035, a figure the government considers unsustainable.
The government hopes that many of those currently unemployed or on sick leave will soon start working and paying taxes, but critics have warned against seeing the reforms as a panacea to Belgium's problems.
Long-term unemployed people often face multiple barriers, from poor health to limited skills, making it hard for them to compete in the labour market. Even if they do find a job, it is unlikely to be well-paid, meaning their tax contribution will be modest.
The left-wing opposition has warned of a "social bloodbath", arguing that people unable to work will be left without any financial safety net.
Despite these concerns, the Federal Government insists the reform will benefit everyone: fewer allowances will ease pressure on the state budget, while new workers will help fill labour shortages. For those affected, officials say, opportunities will arise to improve their lives and increase their income.
