Social Policies
#18Key Findings
With some sustainability concerns, Belgium falls into the upper-middle ranks (rank 18) in the area of social policies. Its score in this area has increased by 0.1 point since 2014.
Despite strong spending on education, performance at middle and higher levels trails that in comparable countries. A number of recent reforms have proved ill-designed, producing adverse effects. Child care is widely available, with some rationing for children under three.
The COVID-19 pandemic exposed weaknesses within a generally strong and inclusive healthcare system, particularly with regard to a shortage of personnel and insufficient focus on prevention. Despite reforms raising the pension-availability age and limiting early retirement, the pension system remains financially fragile.
An increasingly strict migration policy has created strong political tensions, and prompted a hunger strike among refugees refused asylum. Even citizens whose parents or grandparents were immigrants suffer problems of social inclusion and educational performance.
Despite strong spending on education, performance at middle and higher levels trails that in comparable countries. A number of recent reforms have proved ill-designed, producing adverse effects. Child care is widely available, with some rationing for children under three.
The COVID-19 pandemic exposed weaknesses within a generally strong and inclusive healthcare system, particularly with regard to a shortage of personnel and insufficient focus on prevention. Despite reforms raising the pension-availability age and limiting early retirement, the pension system remains financially fragile.
An increasingly strict migration policy has created strong political tensions, and prompted a hunger strike among refugees refused asylum. Even citizens whose parents or grandparents were immigrants suffer problems of social inclusion and educational performance.
Graph View
Graph View
To what extent does education policy deliver high-quality, equitable and efficient education and training?
10
9
9
Education policy fully achieves the criteria.
8
7
6
7
6
Education policy largely achieves the criteria.
5
4
3
4
3
Education policy partially achieves the criteria.
2
1
1
Education policy does not achieve the criteria at all.
OECD data show that Belgium invests more than the OECD average on education ($13,322 per student vs an OECD average of $10,454) and yet achieves one of the lowest “proportion of 25- to 64-year-olds who attained a doctoral or equivalent tertiary education degree” (OECD, EAG 2021). That proportion was just 0.6% of the population, placing Belgium at rank 28 out of 36 countries in 2020.
Altogether, the evidence suggests that Belgium is a top performer in the early stages of education (with 98% of three- to five-year-olds enrolled in early childhood education, 10 percentage points above the OECD average); however, the country fails to sustain that performance in later stages. Recurrent problems include the lack of integration of less well-off populations (non-native speakers being a case in point) and the increasingly substantial underfunding of tertiary education.
Over the last decade, the decline in education indicators prompted a flurry of reforms by both the Flemish and Francophone subnational authorities (education is a decentralized competence). However, being overly complicated and ill-designed, most of these reforms actually had adverse effects.
As a result, many available job vacancies remain unfilled, while job-seekers cannot find employment (see the Council of the European Union’s recommendations for Belgium, the World Economic Forum’s Global Competitiveness Report, and Dumont and Kegels (2016)). The Flemish community is trying to address the mismatch problem by improving the financing of higher education and has initiated a specific science, technology, engineering and mathematics program. Though this approach has not yet produced concrete results.
The general affordability of education helps render access to tertiary education equitable on paper. University fees remain quite low (€835 per year in French-speaking universities, about €960 in Flemish universities). De facto discriminatory factors include the minimal study grants for poorer students, and the increasingly overcrowded classrooms. As reported by Vanden Bosch (2014), the European Commission has also pointed to the “lack of coherence between education and employment policies, given the specific needs of the migrant population.” Nonetheless, it is altogether fair to say that higher education fares well in terms of quality, both in universities and in the country’s diverse non-university higher education institutions.
Citations:
OECD: Overview of the education system (EAG 2021)
https://gpseducation.oecd.org/CountryProfile?primaryCountry=BEL&treshold=10&topic=EO
AGASISTI, Tommaso, Ralph HIPPE and Giuseppe MUNDA (2017). “Efficiency of investment in compulsory education: empirical analyses in Europe.” Publications Office of the European Union.
http://www.oecd.org/pisa/
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018H0910(01)&from=EN
https://student.vub.be/sites/vub/files/eer2122.pdf
OECD (2017), Benchmarking higher education system performance: Conceptual framework and data, Enhancing Higher Education System Performance, OECD Paris.
Schwab, Klaus (ed) (2019). The Global Competitiveness Report 2019. World Economic Forum.
Vanden Bosch (2014). “The European Semester in Belgium: A state of play,” Egmont Royal Institute for International Relations, European Policy Brief No 32
Altogether, the evidence suggests that Belgium is a top performer in the early stages of education (with 98% of three- to five-year-olds enrolled in early childhood education, 10 percentage points above the OECD average); however, the country fails to sustain that performance in later stages. Recurrent problems include the lack of integration of less well-off populations (non-native speakers being a case in point) and the increasingly substantial underfunding of tertiary education.
Over the last decade, the decline in education indicators prompted a flurry of reforms by both the Flemish and Francophone subnational authorities (education is a decentralized competence). However, being overly complicated and ill-designed, most of these reforms actually had adverse effects.
As a result, many available job vacancies remain unfilled, while job-seekers cannot find employment (see the Council of the European Union’s recommendations for Belgium, the World Economic Forum’s Global Competitiveness Report, and Dumont and Kegels (2016)). The Flemish community is trying to address the mismatch problem by improving the financing of higher education and has initiated a specific science, technology, engineering and mathematics program. Though this approach has not yet produced concrete results.
The general affordability of education helps render access to tertiary education equitable on paper. University fees remain quite low (€835 per year in French-speaking universities, about €960 in Flemish universities). De facto discriminatory factors include the minimal study grants for poorer students, and the increasingly overcrowded classrooms. As reported by Vanden Bosch (2014), the European Commission has also pointed to the “lack of coherence between education and employment policies, given the specific needs of the migrant population.” Nonetheless, it is altogether fair to say that higher education fares well in terms of quality, both in universities and in the country’s diverse non-university higher education institutions.
Citations:
OECD: Overview of the education system (EAG 2021)
https://gpseducation.oecd.org/CountryProfile?primaryCountry=BEL&treshold=10&topic=EO
AGASISTI, Tommaso, Ralph HIPPE and Giuseppe MUNDA (2017). “Efficiency of investment in compulsory education: empirical analyses in Europe.” Publications Office of the European Union.
http://www.oecd.org/pisa/
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018H0910(01)&from=EN
https://student.vub.be/sites/vub/files/eer2122.pdf
OECD (2017), Benchmarking higher education system performance: Conceptual framework and data, Enhancing Higher Education System Performance, OECD Paris.
Schwab, Klaus (ed) (2019). The Global Competitiveness Report 2019. World Economic Forum.
Vanden Bosch (2014). “The European Semester in Belgium: A state of play,” Egmont Royal Institute for International Relations, European Policy Brief No 32
Graph View
To what extent does social policy prevent exclusion and decoupling from society?
10
9
9
Policies very effectively enable societal inclusion and ensure equal opportunities.
8
7
6
7
6
For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
5
4
3
4
3
For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
2
1
1
Policies exacerbate unequal opportunities and exclusion from society.
Belgium is a quite inclusive and socially progressive society. It is among the first countries to have legalized gay marriage, facilitated euthanasia in case of terminal illness, and so on. On 26 March 2020, “the Belgian government decided to put in place a system allowing the automatic identification of potential beneficiaries of increased reimbursement of healthcare costs. The decision is part of a broader approach aiming to reduce non-take-up of benefits. It builds on extensive academic research on the positive impact of automation of access to social rights, such as strengthening the effectiveness of social policy and reducing non-justifiable inequalities and hard-to-cure poverty” (ESPN report, 17/4/2020).
Another inclusion tool is the automatic wage indexation granted to salaried workers, which triggered a wage increase of nearly 4% in January 2022. However, this did not prevent national strikes organized by workers’ unions that argued in favor of higher wage increases to compensate for the decreasing share of labor in GDP. This observation is confirmed by hard data: the eventual impact of wage indexation on the share of compensation of employees in GDP appears to be relatively limited (it stood at 49.2% in 2018, as compared with 47.8% across the euro area as a whole).
Belgium is also the last EU country to offer unemployment benefits that are potentially unlimited in time. Several ongoing initiatives are aiming at reining in these unemployment-benefit entitlements. Finally, according to official statistics, income inequality is also slightly more limited than in the rest of the EU (14.1% of the Belgians were considered to be “at risk of poverty” in 2020 according to StatBel (15/06/2021), as compared with a euro area average of 16.4% according to Eurostat). Yet close to 41% of the Belgian population is “unable to save in a typical month,” according to Statbel (14/10/2021).
The extensiveness nature of Belgium’s social safety net earns the country a rank of 17th place out of 189 countries in the Human Development Index. The main weakness remains the persistent inability to integrate non-EU immigrants into the labor market (in 2019, the employment rate among native Belgians and EU immigrants was around 70%. For non-EU immigrants, this was 43.3%).
As in the rest of the OECD, however, popular resentment against inequality, a lack of real wage growth and economic hardship is growing. This is increasing political support for populist parties of the left and right, produced a highly fractionalized parliament in May 2019 and delayed the formation of a full-fledged government until October 2020.
Citations:
ESPN Flash Report, 17/04/2020: https://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=9649&furtherNews=yes
Statbel:
“Poverty risks in Belgium in 2020” (15/06/2021) https://statbel.fgov.be/en/news/poverty-risks-belgium-2020
“More than 4.5 million Belgians unable to save money” (14/10:2021) https://statbel.fgov.be/en/themes/households/poverty-and-living-conditions/risk-poverty-or-social-exclusion
https://plus.lesoir.be/198293/article/2019-01-01/des-experts-prefacent-2019-limmigration-vient-bousculer-les-clivages-politiques
https://plus.lesoir.be/245147/article/2019-09-01/competitivite-et-investissements-deux-chantiers-pour-les-nouveaux-gouvernements
https://plus.lesoir.be/art/d-20190227-3RHMD7?referer=%2Farchives%2Frecherche%3Fdatefilter%3Dlastyear%26facets%3DGL%253A3776BF00-132A-4411-BD5B-C493EDBB2DD6%26sort%3Dweight%26start%3D20%26word%3Dimmigration
OECD Economic Surveys: https://www.oecd.org/economy/belgium-economic-snapshot/
OECD better life initiative: http://www.oecd.org/belgium/Better-Life-Initiative-country-note-Belgium.pdf
Another inclusion tool is the automatic wage indexation granted to salaried workers, which triggered a wage increase of nearly 4% in January 2022. However, this did not prevent national strikes organized by workers’ unions that argued in favor of higher wage increases to compensate for the decreasing share of labor in GDP. This observation is confirmed by hard data: the eventual impact of wage indexation on the share of compensation of employees in GDP appears to be relatively limited (it stood at 49.2% in 2018, as compared with 47.8% across the euro area as a whole).
Belgium is also the last EU country to offer unemployment benefits that are potentially unlimited in time. Several ongoing initiatives are aiming at reining in these unemployment-benefit entitlements. Finally, according to official statistics, income inequality is also slightly more limited than in the rest of the EU (14.1% of the Belgians were considered to be “at risk of poverty” in 2020 according to StatBel (15/06/2021), as compared with a euro area average of 16.4% according to Eurostat). Yet close to 41% of the Belgian population is “unable to save in a typical month,” according to Statbel (14/10/2021).
The extensiveness nature of Belgium’s social safety net earns the country a rank of 17th place out of 189 countries in the Human Development Index. The main weakness remains the persistent inability to integrate non-EU immigrants into the labor market (in 2019, the employment rate among native Belgians and EU immigrants was around 70%. For non-EU immigrants, this was 43.3%).
As in the rest of the OECD, however, popular resentment against inequality, a lack of real wage growth and economic hardship is growing. This is increasing political support for populist parties of the left and right, produced a highly fractionalized parliament in May 2019 and delayed the formation of a full-fledged government until October 2020.
Citations:
ESPN Flash Report, 17/04/2020: https://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=9649&furtherNews=yes
Statbel:
“Poverty risks in Belgium in 2020” (15/06/2021) https://statbel.fgov.be/en/news/poverty-risks-belgium-2020
“More than 4.5 million Belgians unable to save money” (14/10:2021) https://statbel.fgov.be/en/themes/households/poverty-and-living-conditions/risk-poverty-or-social-exclusion
https://plus.lesoir.be/198293/article/2019-01-01/des-experts-prefacent-2019-limmigration-vient-bousculer-les-clivages-politiques
https://plus.lesoir.be/245147/article/2019-09-01/competitivite-et-investissements-deux-chantiers-pour-les-nouveaux-gouvernements
https://plus.lesoir.be/art/d-20190227-3RHMD7?referer=%2Farchives%2Frecherche%3Fdatefilter%3Dlastyear%26facets%3DGL%253A3776BF00-132A-4411-BD5B-C493EDBB2DD6%26sort%3Dweight%26start%3D20%26word%3Dimmigration
OECD Economic Surveys: https://www.oecd.org/economy/belgium-economic-snapshot/
OECD better life initiative: http://www.oecd.org/belgium/Better-Life-Initiative-country-note-Belgium.pdf
Graph View
To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?
10
9
9
Health care policy achieves the criteria fully.
8
7
6
7
6
Health care policy achieves the criteria largely.
5
4
3
4
3
Health care policy achieves the criteria partly.
2
1
1
Health care policy does not achieve the criteria at all.
The Belgian healthcare system is very efficient in normal circumstances: public (or publicly funded) hospitals own and maintain excellent equipment, and university hospitals offer advanced treatments, given the institutions’ participation in medical research. Coverage is broad and inclusive. Access to healthcare is also generally affordable and inclusive, with ample public intervention helping to cover costs of medication and treatment.
However, as emphasized in previous years, the system was not totally sustainable previously, and the COVID-19 crisis has pushed the system beyond its limits. Cost cuts have reduced the appeal of many medical professions, particularly for nurses, which has now created an increasingly critical skills shortage. A schizophrenic policy of “numerus clausus” restricts the number of young graduates allowed to practice medicine, despite the looming lack of doctors.
A second problem came to light during the COVID-19 crisis: the Belgian system does not engage sufficiently in prevention, and was ill-prepared for a public health or epidemiologic crisis. The country indeed has a robust supply of well-equipped hospitals (public, private and linked to the major universities). On paper, it also boasts a comparatively large medical workforce; according to data from Eurostat and the OECD, it has the OECD’s second-highest number of general practitioners per capita (but official data also count retired doctors: for a small fee, doctors can maintain their prescription rights beyond retirement, and are then still counted as being active). The number of nurses per capita is also comparatively high, although recent news reports claim that the sector is hemorrhaging workers since the COVID-19 crisis.
The common point is that the objective of containing public deficits was partially reached by reducing wages and hospital costs (including a reduction in the total number of hospital beds) in ways that may not be entirely viable in the long run, particularly given the aging population. Too few doctors are allowed to graduate and practice, while the short supply of doctors in hospitals is increasingly translating into abusive and underpaid or even unpaid working hours (totaling 70-100 hours per week) for young graduates. While the number of doctors is high, this tendency to limit the supply of doctors also has an impact on healthcare access, mainly for those who don’t know how to navigate the medical sector.
Prevention is furthermore not Belgium’s strong suit. While it boasts advanced warning systems for flu-like symptoms, it performs much less well on several cancer types. Expected “healthy life years at birth” is close to but below the EU average. Although Belgium was part of the WHO’s influenza preparedness initiative, it did not invest in emergency drills, and did not have concrete plans ready for an epidemic of COVID-19 proportions. As a result, the 2019 Global Health Security Index for Belgium was very high overall, but the country scored a zero in the categories of “Emergency Preparedness and Response Planning” and “Risk Communication.” This diagnostic proved painfully relevant during the crisis.
Citations:
Doctors and nurses per capita: https://ec.europa.eu/eurostat/statistics-explained/images/e/e3/Physicians%2C_by_speciality%2C_2018_Health20.png
https://www.belgiqueenbonnesante.be/fr/hspa/accessibilite-des-soins/disponibilite-du-personnel-soignant#A-6
https://www.belgiqueenbonnesante.be/images/KCE/A6_Pract_nurse_FR.jpg
https://statbel.fgov.be/fr/themes/datalab/personnel-des-soins-de-sante
Hospital beds and equipment: https://ec.europa.eu/eurostat/statistics-explained/index.php/Healthcare_resource_statistics_-_beds
https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Healthcare_resource_statistics_-_technical_resources_and_medical_technology
Budget cuts: https://www.levif.be/actualite/belgique/qui-a-coupe-dans-mes-soins-de-sante-sophie-wilmes-a-t-elle-une-part-de-responsabilite/article-normal-1269381.html
Healthy life years: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Healthy_life_years_statistics
Preparedness:
https://www.euro.who.int/en/health-topics/communicable-diseases/influenza/pandemic-influenza/pandemic-preparedness
https://www.covid19healthsystem.org/countries/belgium/livinghit.aspx?Section=3.1%20Planning%20services&Type=Section
https://pubmed.ncbi.nlm.nih.gov/33143076/
https://www.ghsindex.org/country/belgium/
https://www.revuepolitique.be/le-systeme-de-sante-au-prisme-du-virus/
Fallon, C., Thiry, A. & Brunet, S. (2020). Planification d’urgence et gestion de crise sanitaire. La Belgique face à la pandémie de Covid-19. Courrier hebdomadaire du CRISP, 2453-2454(8-9), 5-68. https://doi-org.ezproxy.ulb.ac.be/10.3917/cris.2453.0005
Very critical article on the Belgian response: https://www.revuepolitique.be/covid-19-agir-plutot-que-reagir/
Report to the parliament: https://www.rtbf.be/info/dossier/epidemie-de-coronavirus/detail_que-dit-le-rapport-d-yves-coppieters-pour-la-commission-speciale-sur-la-gestion-du-coronavirus?id=10574411
However, as emphasized in previous years, the system was not totally sustainable previously, and the COVID-19 crisis has pushed the system beyond its limits. Cost cuts have reduced the appeal of many medical professions, particularly for nurses, which has now created an increasingly critical skills shortage. A schizophrenic policy of “numerus clausus” restricts the number of young graduates allowed to practice medicine, despite the looming lack of doctors.
A second problem came to light during the COVID-19 crisis: the Belgian system does not engage sufficiently in prevention, and was ill-prepared for a public health or epidemiologic crisis. The country indeed has a robust supply of well-equipped hospitals (public, private and linked to the major universities). On paper, it also boasts a comparatively large medical workforce; according to data from Eurostat and the OECD, it has the OECD’s second-highest number of general practitioners per capita (but official data also count retired doctors: for a small fee, doctors can maintain their prescription rights beyond retirement, and are then still counted as being active). The number of nurses per capita is also comparatively high, although recent news reports claim that the sector is hemorrhaging workers since the COVID-19 crisis.
The common point is that the objective of containing public deficits was partially reached by reducing wages and hospital costs (including a reduction in the total number of hospital beds) in ways that may not be entirely viable in the long run, particularly given the aging population. Too few doctors are allowed to graduate and practice, while the short supply of doctors in hospitals is increasingly translating into abusive and underpaid or even unpaid working hours (totaling 70-100 hours per week) for young graduates. While the number of doctors is high, this tendency to limit the supply of doctors also has an impact on healthcare access, mainly for those who don’t know how to navigate the medical sector.
Prevention is furthermore not Belgium’s strong suit. While it boasts advanced warning systems for flu-like symptoms, it performs much less well on several cancer types. Expected “healthy life years at birth” is close to but below the EU average. Although Belgium was part of the WHO’s influenza preparedness initiative, it did not invest in emergency drills, and did not have concrete plans ready for an epidemic of COVID-19 proportions. As a result, the 2019 Global Health Security Index for Belgium was very high overall, but the country scored a zero in the categories of “Emergency Preparedness and Response Planning” and “Risk Communication.” This diagnostic proved painfully relevant during the crisis.
Citations:
Doctors and nurses per capita: https://ec.europa.eu/eurostat/statistics-explained/images/e/e3/Physicians%2C_by_speciality%2C_2018_Health20.png
https://www.belgiqueenbonnesante.be/fr/hspa/accessibilite-des-soins/disponibilite-du-personnel-soignant#A-6
https://www.belgiqueenbonnesante.be/images/KCE/A6_Pract_nurse_FR.jpg
https://statbel.fgov.be/fr/themes/datalab/personnel-des-soins-de-sante
Hospital beds and equipment: https://ec.europa.eu/eurostat/statistics-explained/index.php/Healthcare_resource_statistics_-_beds
https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Healthcare_resource_statistics_-_technical_resources_and_medical_technology
Budget cuts: https://www.levif.be/actualite/belgique/qui-a-coupe-dans-mes-soins-de-sante-sophie-wilmes-a-t-elle-une-part-de-responsabilite/article-normal-1269381.html
Healthy life years: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Healthy_life_years_statistics
Preparedness:
https://www.euro.who.int/en/health-topics/communicable-diseases/influenza/pandemic-influenza/pandemic-preparedness
https://www.covid19healthsystem.org/countries/belgium/livinghit.aspx?Section=3.1%20Planning%20services&Type=Section
https://pubmed.ncbi.nlm.nih.gov/33143076/
https://www.ghsindex.org/country/belgium/
https://www.revuepolitique.be/le-systeme-de-sante-au-prisme-du-virus/
Fallon, C., Thiry, A. & Brunet, S. (2020). Planification d’urgence et gestion de crise sanitaire. La Belgique face à la pandémie de Covid-19. Courrier hebdomadaire du CRISP, 2453-2454(8-9), 5-68. https://doi-org.ezproxy.ulb.ac.be/10.3917/cris.2453.0005
Very critical article on the Belgian response: https://www.revuepolitique.be/covid-19-agir-plutot-que-reagir/
Report to the parliament: https://www.rtbf.be/info/dossier/epidemie-de-coronavirus/detail_que-dit-le-rapport-d-yves-coppieters-pour-la-commission-speciale-sur-la-gestion-du-coronavirus?id=10574411
Graph View
To what extent do family support policies enable women to combine parenting with participation in the labor market?
10
9
9
Family support policies effectively enable women to combine parenting with employment.
8
7
6
7
6
Family support policies provide some support for women who want to combine parenting and employment.
5
4
3
4
3
Family support policies provide only few opportunities for women who want to combine parenting and employment.
2
1
1
Family support policies force most women to opt for either parenting or employment.
Although childcare for children below the age of three is “rationed,” Belgium is a good performer in this area overall. Essentially free public schooling is available for children after the age of three, and free or very cheap childcare is available from 7.30am to 6pm on weekdays.
At the time of writing, the biggest change this year has been the reform of child benefits (allocations familiales/kinderbijslag) in each federated entity. Until 2018, they were low for the first two children and higher for the third child onward. Since 2019, this competence has been devolved to the federated entities. Effective from January 2019 in Flanders and January 2020 in Wallonia, the allowance has been substantially increased for the first child and the premium for large families has essentially been scrapped.
Additional child subsidies include personal income tax cuts and other in-kind benefits (e.g., a certain number of free garbage bags per year, reduced prices in some shops and lower public transportation fares), while parents of larger families (3 children or more) may also keep some of these advantages (reduced prices in some shops and lower public transportation fares) even when their children have grown up and are not entitled to child benefits anymore.
The main hurdle to female labor force participation in recent years has been the high implicit tax rate on low-wage earners, which creates a substantial barrier to labor market entry for low-skilled second earners (who are typically women). Eurostat statistics show that the labor market activity rate is as low as 42% for women with low educational attainment (68% for women with intermediate educational attainment), as opposed to 63% and 79% for men, respectively. Such gaps are substantially higher than in neighboring France and Germany.
Citations:
https://kids.partena.be/content/default.asp?PageID=39
https://finances.belgium.be/fr/particuliers/famille/personnes_a_charge/enfants#q3
Eurostat – EU-LFS microdata
https://www.lalibre.be/economie/placements/allocations-familiales-tout-savoir-sur-la-reforme-5c0f96fdcd70e3d2f730358e
https://www.standaard.be/cnt/dmf20181212_04029342
At the time of writing, the biggest change this year has been the reform of child benefits (allocations familiales/kinderbijslag) in each federated entity. Until 2018, they were low for the first two children and higher for the third child onward. Since 2019, this competence has been devolved to the federated entities. Effective from January 2019 in Flanders and January 2020 in Wallonia, the allowance has been substantially increased for the first child and the premium for large families has essentially been scrapped.
Additional child subsidies include personal income tax cuts and other in-kind benefits (e.g., a certain number of free garbage bags per year, reduced prices in some shops and lower public transportation fares), while parents of larger families (3 children or more) may also keep some of these advantages (reduced prices in some shops and lower public transportation fares) even when their children have grown up and are not entitled to child benefits anymore.
The main hurdle to female labor force participation in recent years has been the high implicit tax rate on low-wage earners, which creates a substantial barrier to labor market entry for low-skilled second earners (who are typically women). Eurostat statistics show that the labor market activity rate is as low as 42% for women with low educational attainment (68% for women with intermediate educational attainment), as opposed to 63% and 79% for men, respectively. Such gaps are substantially higher than in neighboring France and Germany.
Citations:
https://kids.partena.be/content/default.asp?PageID=39
https://finances.belgium.be/fr/particuliers/famille/personnes_a_charge/enfants#q3
Eurostat – EU-LFS microdata
https://www.lalibre.be/economie/placements/allocations-familiales-tout-savoir-sur-la-reforme-5c0f96fdcd70e3d2f730358e
https://www.standaard.be/cnt/dmf20181212_04029342
Graph View
To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?
10
9
9
Pension policy achieves the objectives fully.
8
7
6
7
6
Pension policy achieves the objectives largely.
5
4
3
4
3
Pension policy achieves the objectives partly.
2
1
1
Pension policy does not achieve the objectives at all.
Pension policy has long been a touchy issue in Belgium. Previous attempts at reforming the system had been either delayed or watered down until the arrival of the financial crisis. Then, despite considerable political opposition, the Michel government steadfastly pursued an effort – based on a firm plan passed by parliament in July 2015 – to gradually raise the legal pension-eligibility age from 65 to 66 years (by 2025) and ultimately to 67 years (by 2030). It is also seeking stronger limits on access to early retirement (especially before 60 years of age). These were major steps forward, which may explain the jump in employment rates among those aged 55-64, from 35.3% in 2009 to 52% in 2019 (still eight percentage points below the euro area average, according to Eurostat data).
However, these improvements are falling short of reining in pension expenditures by 2050: the estimated budgetary cost of population aging is still estimated to reach 30% of GDP (Federal Planning Bureau, July 2021), with variability of about +3 percentage points possible in case of slower-than-expected migration or productivity growth, and of about -1.4 points in case of unexpectedly high mortality rates among the elderly or higher migration rates.
Citations:
https://www.plan.be/press/communique-2137-fr-les_mesures_recentes_en_matiere_de_pensions_comme_la_hausse_des_minima_augmentent_le_cout_budgetaire_du_vieillissement_a
https://www.sfpd.fgov.be/fr/reforme-des-pensions-de-croo-1#changement2021
https://www.levif.be/actualite/belgique/reforme-des-pensions- le-conseil-d-etat-tacle-le-projet-penibilite/article-normal-1047441.html
https://www.levif.be/actualite/belgique/la-pension-a-mi-temps-possible-des-juillet-2019/article-normal-1036193.html
http://www.oecd.org/belgium/Better-Life-Initiative-country-note-Belgium.pdf
https://www.rtbf.be/info/article/detail_ce-que-la-suedoise-a-change-pour-moi-la-reforme-des-pensions?id=10223077
https://plus.lesoir.be/224006/article/2019-05-13/va-t-ramener-lage-de-la-retraite-65-ans
https://plus.lesoir.be/212077/article/2019-03-13/la-pension-65-ans-recalee
However, these improvements are falling short of reining in pension expenditures by 2050: the estimated budgetary cost of population aging is still estimated to reach 30% of GDP (Federal Planning Bureau, July 2021), with variability of about +3 percentage points possible in case of slower-than-expected migration or productivity growth, and of about -1.4 points in case of unexpectedly high mortality rates among the elderly or higher migration rates.
Citations:
https://www.plan.be/press/communique-2137-fr-les_mesures_recentes_en_matiere_de_pensions_comme_la_hausse_des_minima_augmentent_le_cout_budgetaire_du_vieillissement_a
https://www.sfpd.fgov.be/fr/reforme-des-pensions-de-croo-1#changement2021
https://www.levif.be/actualite/belgique/reforme-des-pensions- le-conseil-d-etat-tacle-le-projet-penibilite/article-normal-1047441.html
https://www.levif.be/actualite/belgique/la-pension-a-mi-temps-possible-des-juillet-2019/article-normal-1036193.html
http://www.oecd.org/belgium/Better-Life-Initiative-country-note-Belgium.pdf
https://www.rtbf.be/info/article/detail_ce-que-la-suedoise-a-change-pour-moi-la-reforme-des-pensions?id=10223077
https://plus.lesoir.be/224006/article/2019-05-13/va-t-ramener-lage-de-la-retraite-65-ans
https://plus.lesoir.be/212077/article/2019-03-13/la-pension-65-ans-recalee
Graph View
How effectively do policies support the integration of migrants into society?
10
9
9
Cultural, education and social policies effectively support the integration of migrants into society.
8
7
6
7
6
Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
5
4
3
4
3
Cultural, education and social policies do not focus on integrating migrants into society.
2
1
1
Cultural, education and social policies segregate migrant communities from the majority society.
Belgium has a contradictory attitude toward immigration. On the one hand, it has traditionally been quite welcoming to political refugees. Its initial reaction to the Syrian refugee inflow was no exception. The government responded with the rapid creation of emergency accommodation centers, followed by the distribution of families among different cities and villages to promote integration and avoid the creation of ghettos. But the situation deteriorated since then, particularly in the wake of the terrorist attacks on Brussels and in the rest of Europe. As in many – if not most – EU member states, popular support for a complete halt to immigration has risen strongly. Like the previous governments, the current De Croo I cabinet further tightened its policy, creating strong tensions in the coalition between the left-of-center Socialists and the right-of-center Liberals. Some immigrants who were refused asylum launched a hunger strike, and the Socialists threatened to scupper the government coalition if the strike resulted in any deaths. The immigration minister eventually agreed to some compromises with the strikers, but these proved to be very limited a few months later.
Though legally recognized as Belgian citizens, second and third generation immigrants have also become victims of these tensions. The OECD and the European Semester have repeatedly underlined the dismal performance of Belgian schools, based on PISA scores, with regards to the educational performance of pupils and students with a migrant background. In its June 2019 recommendations, the Council of the European Union reported: “People with a migrant background, in particular women, continue to experience higher unemployment, lower activity rates, higher in-work poverty and over-qualification.” According to EU-SILC data, the risk of poverty among foreign-born residents is three times higher than for native-born citizens, which increases to four times higher for non-EU-born residents. The employment gap was 20 percentage points in 2016. The Itinera Institute has argued in favor of enhanced data collection within these communities to produce fresh, evidence-based policies to improve the job placement rate of migrant workers.
Thus, Belgium has been a country of immigration, and is generally opposed to overt racism and discrimination. Yet its performance in terms of eventual social inclusion and labor market participation ought to be improved.
Citations:
http://www.oecd.org/pisa/
https://www.cire.be/analyses/1318-asile-et-migration-une-politique-restrictive-et-stigmatisante-envers-les-migrants
https://plus.lesoir.be/243237/article/2019-08-22/les-signalements-de-haine-en-ligne-ont-double-en-periode-electorale
https://www.courrierinternational.com/article/en-belgique-une-campagne-coup-de-poing-pour-denoncer-la-politique-migratoire
http://www.luttepauvrete.be/chiffres_nombre_pauvres.html
https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1560258016104&uri=CELEX:52019DC0501
Though legally recognized as Belgian citizens, second and third generation immigrants have also become victims of these tensions. The OECD and the European Semester have repeatedly underlined the dismal performance of Belgian schools, based on PISA scores, with regards to the educational performance of pupils and students with a migrant background. In its June 2019 recommendations, the Council of the European Union reported: “People with a migrant background, in particular women, continue to experience higher unemployment, lower activity rates, higher in-work poverty and over-qualification.” According to EU-SILC data, the risk of poverty among foreign-born residents is three times higher than for native-born citizens, which increases to four times higher for non-EU-born residents. The employment gap was 20 percentage points in 2016. The Itinera Institute has argued in favor of enhanced data collection within these communities to produce fresh, evidence-based policies to improve the job placement rate of migrant workers.
Thus, Belgium has been a country of immigration, and is generally opposed to overt racism and discrimination. Yet its performance in terms of eventual social inclusion and labor market participation ought to be improved.
Citations:
http://www.oecd.org/pisa/
https://www.cire.be/analyses/1318-asile-et-migration-une-politique-restrictive-et-stigmatisante-envers-les-migrants
https://plus.lesoir.be/243237/article/2019-08-22/les-signalements-de-haine-en-ligne-ont-double-en-periode-electorale
https://www.courrierinternational.com/article/en-belgique-une-campagne-coup-de-poing-pour-denoncer-la-politique-migratoire
http://www.luttepauvrete.be/chiffres_nombre_pauvres.html
https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1560258016104&uri=CELEX:52019DC0501
Graph View
How effectively does internal security policy protect citizens against security risks?
10
9
9
Internal security policy protects citizens against security risks very effectively.
8
7
6
7
6
Internal security policy protects citizens against security risks more or less effectively.
5
4
3
4
3
Internal security policy does not effectively protect citizens against security risks.
2
1
1
Internal security policy exacerbates the security risks.
Belgium has always been a generally safe country and the situation has continued to improve over the last years. Yet, some violence does occur and the country’s crime rate is slightly above several neighboring countries. In addition, Belgium has become infamous for having attracted a number of Islamist terror activists, who are producing a new type of threat that the country has found difficult to manage. This is, however, a general issue in Europe and among OECD countries.
With regard to low-level criminality, self-reported rates of victimization are slightly above the OECD average, in part due to an above-average incidence of bullying that has not received sufficient policy attention. Underfunded and overcrowded prisons are another problem, in spite of a scheme to build new prisons with modern equipment. The court system remains slow (due to a huge backlog) and is often perceived as lenient. This helps maintain a feeling of impunity for misdemeanor offenders. Yet, the country’s social stability, neo-corporatist arrangements and limited levels of income inequality have largely insulated it from mass demonstrations or riots of the kind sometimes observed in France or other EU member states.
Crime rates are going down, and the government has decided to increase funding for the police forces.
Citations:
OECD 2015. Better life initiative. How is life in Belgium? October 2015. http://www.oecdbetterlifeindex.org/countries/belgium/
https://www.rtbf.be/info/belgique/detail_l-armee-en-rue-a-fait-baisser-la-criminalite-de-30-a-bruxelles-et-anvers?id=8947069
http://www.stat.policefederale.be/assets/pdf/notes/tendances_2016_2017_SPC.pdf
http://www.stat.policefederale.be/statistiquescriminalite/interactif/graphique-par-categorie-principales-des-infractions/
With regard to low-level criminality, self-reported rates of victimization are slightly above the OECD average, in part due to an above-average incidence of bullying that has not received sufficient policy attention. Underfunded and overcrowded prisons are another problem, in spite of a scheme to build new prisons with modern equipment. The court system remains slow (due to a huge backlog) and is often perceived as lenient. This helps maintain a feeling of impunity for misdemeanor offenders. Yet, the country’s social stability, neo-corporatist arrangements and limited levels of income inequality have largely insulated it from mass demonstrations or riots of the kind sometimes observed in France or other EU member states.
Crime rates are going down, and the government has decided to increase funding for the police forces.
Citations:
OECD 2015. Better life initiative. How is life in Belgium? October 2015. http://www.oecdbetterlifeindex.org/countries/belgium/
https://www.rtbf.be/info/belgique/detail_l-armee-en-rue-a-fait-baisser-la-criminalite-de-30-a-bruxelles-et-anvers?id=8947069
http://www.stat.policefederale.be/assets/pdf/notes/tendances_2016_2017_SPC.pdf
http://www.stat.policefederale.be/statistiquescriminalite/interactif/graphique-par-categorie-principales-des-infractions/
Graph View
To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?
10
9
9
The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
8
7
6
7
6
The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
5
4
3
4
3
The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
2
1
1
The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
The economic crisis has placed continued pressure on the government’s development-aid efforts. International-development policies, which are now split between the federal and federated entities, are increasingly being seen as an instrument to help Belgian firms export to developing countries. Unrelated aid is being cut, and Belgium has repeatedly missed its own spending targets despite recognized Belgian expertise in the field, particularly in sub-Saharan Africa, given the country’s privileged ties with former colonies and protectorates (Congo, Rwanda and Burundi). Most of Belgium’s cooperation aid is channeled via its main federal public agency (formerly Belgian Technical Cooperation (BTC), but called ENABEL since 2018) and diverse NGOs. The federated entities also provide their own independent support for cooperation aid, via higher education institutions and NGO-supported projects.
At the international level, Belgium has been part of efforts to push for more fair-trade arrangements, but has not been an agenda-setter.
Citations:
https://diplomatie.belgium.be/sites/default/files/rapport-annuel-cd-2017.pdf
https://www2.compareyourcountry.org/aid-statistics?cr=625&cr1=oecd&lg=en&page=0
At the international level, Belgium has been part of efforts to push for more fair-trade arrangements, but has not been an agenda-setter.
Citations:
https://diplomatie.belgium.be/sites/default/files/rapport-annuel-cd-2017.pdf
https://www2.compareyourcountry.org/aid-statistics?cr=625&cr1=oecd&lg=en&page=0