Purchasing power: experts' report due on Wednesday (Update)

On 28 April, the government entrusted a group of experts led by the Governor of the National Bank with the task of drafting a report on these two themes and providing it with recommendations for dealing with inflation and the economic consequences of the war in Ukraine.

Support measures for households have already been taken and should be extended. Several parties of the majority pleaded to make these structural and/or to take additional measures. As the end of the political year approaches and a few days before a national demonstration, the document is particularly awaited.

Both the N-VA and the PTB questioned the Prime Minister on this subject. Monday’s demonstration will specifically target the 1996 Business Competitiveness Act which, since its reform in 2017, has curtailed off-index wage increases. The PTB calls for its revision. The N-VA, on the other hand, believes that “initiatives” will have to be taken in the face of successive crossings of the pivot index, which lead to the automatic indexation of wages. Under the previous legislature, the nationalists allied with the liberals and the CD&V had decided on an index jump.

In the eyes of the Prime Minister, automatic indexation and the 1996 law are two sides of the same coin. “It’s a good system if we keep the balance. Today’s competitiveness is tomorrow’s purchasing power,” he said.

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