The Minister of Economy and Labor Pierre-Yves Dermagne on Monday evening rejected the FED’s request to touch the automatic indexation of wages to cope with the surge in inflation.
There can be no question of touching the automatic indexation at a time when so many families are struggling to pay their electricity and gas bills
“For me, there can be no question of touching the automatic indexation at a time when so many families are struggling to pay their electricity and gas bills.“, said Deputy Prime Minister PS.
He was responding to a plea from the FEB asking if “Belgium, a small open economy, could still afford, as the only and last European country (apart from Luxembourg and Malta), to maintain a generalized system of automatic wage indexation“.
“Both within the European Council and the European Parliament, there is an agreement to give automatic indexation systems a place in the search for adequate minimum wages at European level. The importance of this aspect is therefore also recognized at European level.“, observed Pierre-Yves Dermagne.
The minister ensures that inflation is closely monitored by the Belgian statistical office Statbel and the Planning Bureau and that, during the recent budget conclave, measures were taken to mitigate the rise in energy prices.
For him, automatic wage indexation not only protects the purchasing power of workers, retirees and benefit recipients, but it is also important for companies, “because it guarantees the maintenance of consumption“.
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