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"A government that brings people together"

Tue 14/10/2014 - 16:40 Colin Clapson Prime Minister Charles Michel has said that his new teamwould show courage and take responsibility. Belgiums brand new Prime Minister was addressinglawmakers for a first time in order to set out his centre-right government's plans.

The session got off to a rowdy start when Francophone socialist MP Laurette Onkelinx insisted thatthe government provide an explanation for two events that have caused quite a storm in certainquarters in Francophonia: the assertion by the new Interior Minister Jan Jambon that peoplecollaborating with Nazi Germany had their reasons and the presence of Asylum Secretary TheoFrancken at a birthday party for Bob Maes, the founder of the VMO, an organisation that was laterlabelled a militia by the courts. Both politicians belong to the Flemish nationalist N-VA.

The N-VA's brand new speaker, Siegfried Bracke, had his hands full sorting out the matter before thePrime Minister could take the floor.

Setting out the government's policies the Prime Minister said that the new government would showcourage and take responsibility: "I want a government that brings people together and does notdivide. I want to carry out the necessary reforms in dialog. I am extending a hand to the socialpartners, the devolved governments and everybody concerned by our projects."

Mr Michel stressed the need to create employment: "Economic development is the key to our socialproject."

Government policy is based on three commitments: institutional stability, social consultations andthe lowering of taxes, especially on labour. Taxes on labour are being cut by 4 billion euros.

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Plans of the new Belgian government

The greatest ambition of Belgium's new centre-right government will affect wages and incometaxes in order to stimulate Belgian business, and the retirement age will be raised.

Wages and benefits will not be kept in line with inflation for a while and the tax on labour thatemployers have to pay is being cut from 33 percent to 25 percent.

These are some of the most striking measures contained in the government accord that was releasedon Thursday.

The new government says that salaries should be calculated on the basis of an employees'productivity and skills rather than on seniority.

Wage restraint will have to be taken into account when collective labour agreements setting wagelevels in entire sectors are concluded.

The centre-right administration plans to modify the wage level system: what work you do and yourskills will be more important than your seniority and age. It is intrioducing career accounts.

Under this system employees will build up rights during their career. These rights will allow you totake career breaks or add to your retirement pension.

The government is curtailing opportunities for older employees to work half-time or a four day week,while receiving a top-up benefit.

The retirement age rises from 65 to 67 in 2030.

Other measures include: stricter checks for new recruits joining the armed forces to ensure membersof the armed forces are fitter.

Belgium's aging F-16 fighter jets will be replaced as will frigates and mine hunters.

A clamp down is planned on Belgian jihadi fighters returning from Syria.

Fighters with dual nationality can lose their Belgian nationality.

Non-Belgians can be banned from entering the country. Syria fighters will lose any benefit theyreceive as an asylum seeker or refugee. Residence permits will be cancelled too.

The Belgian nuclear reactors Doel 1 and Doel 2 will end their span of life later than planned: in 2015and 2016.

There will be cuts in hospital beds creating more beds for people with chronic diseases.

Doctors will no longer be able to charge supplements for day treatment in double and triple bedrooms.

The railways will have to guarantee a minimum service. The same goes for prison guards.

The new government is increasing duty on DERV (diesel), spirits, wine and coffee.

Beer escapes the hike, but tobacco will become more expensive. VAT on online purchases abroad isbeing increased.

Belgium will get a new casino and cruise ships visiting Belgian ports will be able to open casinos too.

Belgians abroad will be able to vote in regional and European elections too.

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Families will pick up the bill: Tobback

The opposition parties have reacted with criticism to the measures agreed upon by the four partiesthat will form Belgiums new Federal Government.

The Flemish socialist leader Bruno Tobback told listeners to VRT Radio 1s morning news and currentaffairs programme De ochtend that families will pick up the bill for the measures contained in thecoalition agreement.

Mr Tobback said that the EUR 250 per annum increase in the tax-free sum for work-related expensesis poor compensation when you look at what extra expen ses will be carried by working people as aresult of the policies of the Flemish and (yet to be formed) Federal Government.

Mr Tobback also criticised the Federal Government negotiators decision to introduce a tax onfortunes that are sent off-shore rather than a system of capital gains tax on all income frominvestments.

Despite Mr Tobbacks, the new tax was very nearly introduced by the outgoing Di Rupo governmentof which his party was a member.

"Im not against it, but you cant call it a keystone policy.

Mr Tobback also vowed to revoke the raising of the retirement age to 67. "This will be the firstmeasure that we will revoke on the first day that the Flemish socialists are back in the FederalGovernment."

"Inequitable and unfair choice"

The Flemi sh greens Group Leader in the Chamber of Representatives Kristof Calvo (photo) told theVRT that Here a choices have been made that are inequitable and unfair.

Despite conceding that we need to work longer in order to sustain our old age pension system, MrCalvo says that raising the statutory retirement age is not the answer.

We need to bridge the gap between the average age at which people are retiring (currently 60) andthe statutory retirement age (65) and make sure that people are able to work for longer.

There was also criticism for the extent of the measures to reduce the wage burden for employers andthe failure to introduce a system of capital gains tax.

"The negotiators havent necessarily made the best choices, but rather choices driven by dog ma.Things that sound good if you are a right- wing conservative politician, Mr Calvo concluded.

The N -VA hasnt changed Belgium; Belgium has changed the N -VA

The far-right Vlaams Belang focussed its criticism of the coalition agreement on the lack of anyproposals for further Flemish autonomy and stop the flow of public money from Flanders toWallonia.

The man set to become the partys new leader Tom Van Grieken wrote on Facebook and Twitter thatThe N -VA hasnt changed Belgium, Belgium has changed the N-VA.

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Meanwhile, the far- left PVDA/PTB+ MP Raoul Hedebouw told journalists that The Michelgovernment has come out of the closet as a government that will make working people, pensionersand the young poorer and shareholders richer.

Belgium's new right-wing coalition takes office with young PM

Belgium's new right-wing coalition government was sworn in Saturday after four months ofhorsetrading with francophone liberal leader Charles Michel becoming the country's youngest primeminister since 1840.

For the first time a coalition of four parties -- three Dutch-speaking, including the nationalist NewFlemish Alliance (N-VA), and one French-speaking -- will rule the linguistically divided countrytogether.

Michel, 38, struck a deal Tuesday to push through major economic and social reforms, includingpushing back the retirement age from 65 to 67 by 2030.

The coalition cuts the outgoing Socialists from power for the first time in a quarter of a century.Socialist premier Elio Di Rupo's resignation was officially accepted earlier in the day.

"I swear loyalty to the King, to obey the constitution and the laws of the Belgian people," the 18members of the cabinet swore one after the other in front of King Phillippe, with Michel taking theoath of office in French, Dutch and the country's third official language, German.

The Flemish nationalist N-VA party was the big winner in the mostly Dutch-speaking Flanders regionin the May 25 elections with 33 percent of the vote. Even though their leader Bart De Wever hasopted to stay out of government, they took most of the plum cabinet posts.

De Wever said he was happy the new coalition had "pushed out the socialists" in an interviewSaturday with the Brussels economic daily, L'Echo.

His right-hand man, Jan Jambon, got the interior ministry, while his party also took the defence,finance, public service and immigration portfolios.

With only four women in the 18-member cabinet, and no visible ethnic minorities, the Belgium presssaid the new government was far from reflecting the country's diversity.

In addition to the premier post, Michel's francophone Reform Movement (MR) got some of the moredifficult ministries including pensions, energy and the environment with the country facing possiblepower cuts this winter, and airline overflights of the densely populated nation of 11 million causingcontroversy.

The Flemish Christian Democrats (CD&V) took the justice, economy and employment posts, while thepopular Maggie De Block was put in charge of health, with her Flemish liberal party also taking thepublic enterprise ministry.