According to Bruno Colmant, an economist at the Royal Academy, the cost of granting such a sum to a workforce of 4 million people exceeds the state’s financial capacity, transforming a campaign pledge into a “mirage” for low-income earners.
The Gap Between Campaign Promises and Fiscal Reality
During the election campaign, the Arizona platform promised an additional €500 for every worker. However, current analysis suggests this has materialized not as a universal gain, but as a disparity in the gap between benefit recipients and active workers. Bruno Colmant argues that the scale of the Belgian active population makes a flat €500 increase “unthinkable” and “unpayable” from a budgetary perspective.
The reality for many workers is a marginal gain that remains vulnerable to economic volatility. Colmant warns that any slight increase in purchasing power is currently threatened by potential new inflationary shocks, which could effectively erase the small gains workers have seen.
Tax Adjustments and Hidden Costs
While the government focuses on nominal increases in purchasing power, other fiscal measures are reducing the net benefit for citizens. Several tax advantages have been scaled back, creating a “give with one hand, take with the other” dynamic.
- Alimony Deductions: Tax relief on alimony payments has been reduced from 80 to 50 %.
- Capital Gains: The tax on capital gains has seen significant increases, with some rates doubling.
- VAT Convergence: The potential fusion of VAT rates at 9 % is cited as a primary threat to the wallets of Belgian consumers, as it could raise the cost of essential goods.
Comparative Impact: Workers vs. Beneficiaries
The primary tension in the current fiscal policy is the narrowing gap between those receiving social benefits and those in the workforce. The promised €500 was intended to incentivize labor by increasing the “work premium.” Instead, the actual implementation has resulted in a scenario where the difference between a benefit check and a low-wage salary remains stagnant or insufficient to justify the transition to employment.
| Proposed Measure | Stated Goal | Reported Outcome/Risk |
|---|---|---|
| €500 Worker Bonus | Increase purchasing power for all workers | Budgetarily impossible for 4M people; marginal gains only |
| VAT Rate Fusion (9 %) | Administrative simplification | Increased costs for consumers |
| Alimony Tax Shift | Fiscal consolidation | Reduction in net income for payers (80 → 50 %) |
Economic Outlook for Belgian Households
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