Prime Minister Alexander De Croo’s pledge to 'stop the rot' in managing the national budget has failed, Ann Vermorgen, chair of the Algemeen Christelijk Vakbond (ACV), said on Tuesday evening in Antwerp.
Speaking at an event marking Rerum Novarum, an annual celebration of the Christian labour movement, Vermorgen proposed an alternative to what she called the “anti-social Arizona budget.”
She acknowledged the need to restore order to the budget but stressed this must not come at the expense of the most vulnerable in society.
Union says alternative budget could generate nearly €30 billion
The trade union’s proposed plan, Vermorgen said, could generate nearly €30 billion in revenue.
The plan centres on the principle that “a euro is a euro.” Vermorgen advocated taxing income from labour and capital equally, noting that workers's salaries are taxed at higher rates than earnings from assets.
According to the ACV, such a measure alone could yield €12.9 billion.
The union also suggests drawing €5 billion from a wealth tax, alongside a thorough evaluation and reduction of corporate and wage subsidies.
Vermorgen referred to reports by the National Bank and the Federal Planning Bureau, which indicate that such subsidies contribute little to the economy. Reassessing them could bring in €700 million, she added.
Wealth registry
Additionally, the plan calls for stricter taxation of management companies and fair contributions from flexi-jobs and student labour. Vermorgen also urged the introduction of a wealth registry.
Vermorgen criticised the current 'centenindex,' wage indexation measure, claiming it lacks transparency and financial merit.
She argued that an index freeze reduces government revenues through lost contributions and taxes, while leaving workers with lower wages.
The ACV, in collaboration with social partners, presented an alternative proposal, but the government continues to back the centenindex, she added.
Call for continued resistance
The union leader joined demonstrations in Brussels on Tuesday as part of the sixth national day of action. She accused the Prime Minister of ignoring widespread public protests and adhering rigidly to his chosen course, which, she asserted, is leading the country further into a financial quagmire.
Despite setbacks, Vermorgen urged continued resistance, highlighting past achievements gained through protests and action days.
The successes include adjustments to pension penalties for short-term illnesses, equal recognition of temporary unemployment in pension calculations, and safeguarding early retirement schemes from age 55.
