Belgium cities angry over lack of federal pension support

Lailuma Sadid
Credit: Google Street View

Brussels (Brussels Morning Newspaper) – Belgium’s new pension law gives aid only to 10 cities with over 100,000 people, excluding places like Genk (€12M cost by 2030). Mayors Wim Dries and Hannes Anaf strongly oppose it.

As VRT News reported, Belgium‘s city councils are upset about a new law. This law would only give extra money for pensions to the biggest cities. The government promised to help local governments with the cost of pensions for their workers. Officials mentioned that these pensions are a significant concern for cities, as they must cover the costs, and the number of workers retiring is increasing. 

Cities say they can’t keep paying without help and might have to cut services or raise taxes. But the government doesn’t have much money. So, the new law says only cities with over 100,000 people can get help with their pension costs.

What does the new pension law mean for smaller cities?

A new law will give money to just 10 cities to help with their pension costs. Cities like Genk, Mechelen, and Kortrijk won’t get any financial aid. This has caused a lot of anger, especially from Genk’s mayor, Wim Dries. He’s also the chairman of a group for Flemish cities. Dries says the law is unfair and plans to fight it in court. 

He believes the rule about needing 100,000 people to get help is not fair. He says smaller cities often have the same money problems as the bigger cities. People are worried that the law will create 2 types of cities. He mentioned that big cities will be able to manage, but smaller ones will struggle with rising pension costs and not get enough support.

“It is particularly strange that only four cities in Flanders would receive help with their pension bill, while all cities in Flanders actually need this,”

Dries said.

Local governments in Belgium are unhappy about the new pension law. Smaller cities are struggling with rising costs and getting little help. The Flemish Region already contributes to pension costs. For instance, Genk’s total pension cost is expected to reach €12 million by 2030. 

Flanders will cover half, but Genk must find the other half. Larger cities like Antwerp and Ghent receive support from both Flanders and the federal government, easing their financial strain. This disparity is causing frustration among smaller cities, which believe the new law is unfair to them. They feel left behind while bigger cities get more assistance.

The Council of State, which gives advice on laws, says the law might not be legal or follow the constitution. Wim Dries, the mayor of Genk, is a strong critic and thinks the Constitutional Court won’t agree with the law. Other cities are also worried. Turnhout, a smaller city, will have to pay over €10 million each year for pensions by 2030, and it won’t get any help from the federal government. 

Mayor Hannes Anaf says this is a big problem, making it difficult for the city to invest in things like infrastructure and services. He mentioned that this growing opposition could lead to legal battles and could have lasting effects on how local governments work and how money is distributed fairly.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Lailuma Sadid is a former diplomat in the Islamic Republic of Afghanistan Embassy to the kingdom of Belgium, in charge of NATO. She attended the NATO Training courses and speakers for the events at NATO H-Q in Brussels, and also in Nederland, Germany, Estonia, and Azerbaijan. Sadid has is a former Political Reporter for Pajhwok News Agency, covering the London, Conference in 2006 and Lisbon summit in 2010.
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