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    Financial tension in financial services suppliers

    Government policies and ever more complicated social legislation are resulting in financial unease in social secretariats (service suppliers). One in 3 of these subcontractors are suffering losses, according to the daily De Standaard on Monday. The main issue is the skyrocketing costs of IT services. These result from the often retroactive rule changes in social legislation, reckons Jos Gijbels from the Union of Social Secretariats.

    Belgium has 35 official social secretariats dealing with 32 billion euros worth of social contributions and 18 billion euros of payroll tax for the government. Income derived from these amounts is drastically down, mainly because of very low interest rates. This situation was compounded by the push made by the Di Rupo government to have the social secretariats re-deposit these sums sooner.

    Christopher Vincent (Source: Belga)