Belgium: Special powers and special measures

As of yesterday, Belgium has had a government in full power (no longer a caretaker government), supported by a large majority in parliament, and from several parties that are not part of this government. In addition, it has obtained special powers to take decisions without a vote in parliament. The first effects of this have not been long in coming.

• A package of measures totalling €8-10 billion (2% of GDP) has been announced to offset the devastating impact of the epidemic on the economy.
• The measures are aimed primarily at household purchasing power. The government expects one million workers to be temporarily unemployed (i.e. 40% of employees in the private sector!). In addition to the planned allowance (70% of salary capped at €2,750 gross), an allowance of €150 per month per worker is planned.
• For self-employed workers (more than 800,000 people), drawing allowances will be made easier and social security contributions for the first two quarters of the year have been deferred until 15 December.
• Companies will also benefit from deferrals of taxes and social security contributions. Measures to defer credit payments are expected to be decided with the banking sector, and potential state guarantees for bridge loans are likely.