Deputy Prime Minister and Health Minister Frank Vandenbroucke (Vooruit) has warned that he cannot remain in a government whose policies “trample on the most vulnerable” amid ongoing discussions over Belgium's federal budget.
"I cannot work and live in a government whose message is: we are going to trample on everyone vulnerable," Vandenbroucke said on Tuesday during the opening political science lecture at Ghent University (UGent).
During the same lecture last year, Prime Minister Bart De Wever (N-VA) painted a relatively pessimistic picture of the welfare state, however, Vandenbroucke argued that it remains essential. A wellfare state is not an expense, he said, "but the foundation of many of our freedoms, because it takes burdens off our shoulders."
Vandenroucke, nonetheless, said the system needs fundamental reform if it is to survive, including measures to tackle abuse. "At the bottom of the social ladder, but also at the top," he added.
He specifically pointed out to the growing use of management companies, which Vooruit's research department estimates cost the Belgian state at least €4.2 billion a year. Management companies, which provide management or consultancy services to other businesses, are commonly used by self-employed professionals who invoice clients through the company and receive the income from their work through it.
Vandenbroucke described them as a "fantastic system" because they allow people to start businesses and take risks. However, he argued that they undermine the welfare state when they are used by people who are effectively employees but present themselves as self-employed in order to pay less tax and fewer social security contributions.
While there are no official figures on the total cost of management companies to the state, a report published by Vooruit's research department estimates their annual impact on public finances at between €4.2 billion and €4.7 billion.
