IMF welcomes the structural reforms undertaken by the Federal Government

The International Monetary Fund acknowledged that the Federal Government had taken “a step in the right direction” for the revival of the Belgian economy. More specifically, the IMF approved of the government’s pension reforms and the measures taken to boost companies’ competitiveness, such as the proposal not to index salaries in 2015.

However, the IMF recommends that the Government go further in order to stimulate productivity and job creation.

The Prime Minister was pleased that another international body has recognised Belgium’s significant efforts to encourage job creation with a view to financing the country’s solidarity-based social security system in the long term. “Job creation is the best form of social security. This has demonstrated once more that the Government’s chosen course is the best way to guarantee our wellbeing, our jobs and the solidarity underpinning our country”, commented the Prime Minister.

The IMF’s positive reaction to Belgium’s socio-economic programme follows in the wake of similar remarks from the OECD and the European Commission.

The IMF also advocated a tax shift – namely shifting some labour taxes onto income from sources other than labour. The Federal Government pointed out that it has not raised labour taxes and that it is focusing most of its stabilising measures on cuts to public spending.