After nearly eight months of negotiations, local, regional, and European elections, Belgium’s new government—led by Bart De Wever (N-VA)—has emerged with an ambitious agenda. For the first time in 16 years, the country has a governing coalition reflecting both the majority in Flanders as well as Wallonia. This unique composition signals a departure from past compromises, as the administration embarks on significant structural reforms to tackle economic stagnation, rising pension costs, and energy security concerns.
A government built on tough choices
The protracted coalition talks underscore the political complexity of Belgium’s fragmented system. Forming a government required balancing ideological differences between the (centre-)right N-VA and MR, and the more centrist Les Engagés and cd&v, and left-leaning Vooruit. Despite their divergences, the coalition partners of Belgium’s new government have coalesced around a set of urgent priorities: curbing public spending, reforming the labour market, and strengthening security measures.
One striking feature of the new administration is its streamlined structure. There are no longer any state secretaries, marking a shift towards a more consolidated government. The full list of ministers is as follows:
- Bart De Wever – Prime Minister
- David Clarinval – Deputy Prime Minister, Minister of Work, Economy, and Agriculture
- Maxime Prévot – Deputy Prime Minister, Minister of Foreign Affairs, European Affairs, and Development Cooperation
- Frank Vandenbroucke – Deputy Prime Minister, Minister of Social Affairs and Public Health, responsible for Poverty Reduction
- Vincent Van Peteghem – Deputy Prime Minister, Minister of Budget, responsible for Administrative Simplification
- Jan Jambon – Deputy Prime Minister, Minister of Finance and Pensions, responsible for the National Lottery and Federal Cultural Institutions
- Annelies Verlinden – Minister of Justice, responsible for the North Sea
- Bernard Quintin – Minister of Security and Home Affairs, responsible for Beliris
- Theo Francken – Minister of Defence, responsible for Foreign Trade
- Jean-Luc Crucke – Minister of Mobility, Climate, and Ecological Transition
- Vanessa Matz – Minister of Public Administration Modernisation, responsible for State-Owned Enterprises, Civil Service, Building Management, Digitalisation, and Federal Scientific Institutions
- Rob Beenders – Minister of Consumer Protection, Social Fraud Prevention, People with Disabilities, and Equal Opportunities
- Annelies Van Bossuyt – Minister of Asylum and Migration, Social Integration, responsible for Urban Policy
- Mathieu Bihet – Minister of Energy
- Eléonore Simonet – Minister of SMEs, Entrepreneurs, and the Self-Employed
Fiscal austerity and labour market reforms
The country’s public finances are under strain, with rising debt and unsustainable pension costs demanding urgent action. Belgium’s new government has responded with a series of cost-cutting measures designed to curb spending while incentivising employment.
The most controversial labour market reform is the introduction of a two-year cap on unemployment benefits. The Belgian system, known for indefinite support, is now shifting towards a model where benefits decrease over time. While this aims to encourage job-seeking, the opposition fears it could risk exacerbating poverty for long-term unemployed individuals who struggle to reintegrate into the workforce.
To counterbalance this, the government is introducing a pension system with both incentives and penalties. A ‘bonus-malus’ scheme will reward those who work beyond retirement age while penalising early retirees who have not met minimum career requirements. This policy is designed to extend working life and alleviate fiscal pressure on the pension system. However, labour unions and public sector workers have already voiced strong opposition, fearing a loss of acquired rights.
Energy security takes centre stage
One of Belgium’s new government most consequential decisions is the reversal of the nuclear phase-out policy. The coalition has pledged to scrap the 2003 nuclear exit law and extend the lifespan of existing reactors for up to 20 years. This move is framed as essential to ensuring energy security and stabilising electricity prices amid the ongoing energy crisis.
At the same time, Belgium will continue to phase out fossil fuels while investing in alternative energy sources. The government aims to position the country as a European hub for hydrogen, with strategic investments in infrastructure to support future energy needs. The question remains whether these plans will materialise in a timely manner, given the regulatory and financial hurdles that have hindered past energy projects.
Security and migration: a harder line
Security policy has taken a sharp turn under the new administration, with a strong emphasis on law enforcement and migration control. Belgium’s new government has committed to expanding police forces and intensifying crackdowns on organised crime, particularly in Brussels and Antwerp, where drug-related violence has surged.
On migration, the government is implementing the strictest policies Belgium has seen in years. Family reunification rules are tightening, and undocumented individuals facing deportation may now be subject to forced home entry by law enforcement. These measures reflect a broader European trend of governments responding to public concerns over immigration with increasingly restrictive policies.
Institutional and political shifts
Beyond policy changes, Belgium’s new government agreement marks a shift in the institutional landscape. The abolition of the Senate, a long-discussed reform, will finally be enacted by 2029. This move underscores the government’s broader strategy of reducing political overhead.
Despite N-VA’s historical advocacy for greater regional autonomy, the agreement is conspicuously silent on major constitutional reforms. This reflects the coalition’s pragmatic approach: focusing on governance rather than reigniting divisive debates on state structure. Boosting the economy in the South will empower the North.
A government of contradictions?
While the new government positions itself as a force for reform, contradictions abound leading to uncertainty for businesses. The coalition touts fiscal responsibility yet introduces new taxation in the form of a 10% capital gains tax—an unprecedented move in Belgium. It pledges energy security while facing major obstacles in nuclear investment. The success of Belgium’s new government administration will depend on its ability to navigate these contradictions while implementing its ambitious agenda. On top of that, an important part of the budget relies on yet uncertain gains from policy ambitions, such as increased taxes from an 80% employability by 2029. As Belgium moves into this new political era, businesses and citizens alike will be watching closely to see whether these bold reforms will bring the intended stability and prosperity—or deepen existing divisions.
