The Policy Challenge

The fundamental challenge in Belgium is coping with population ageing. It will reduce economic growth and put pressure on public finances. The chapter outlines a strategy to minimise the economic costs of population ageing. First, budget consolidation should be implemented to put public finances on a sustainable path. Second, labour-market and social-security reforms are needed to make working more attractive for groups with low employment rates – older workers, younger workers and ethnic minorities – and to make employment of these groups more profitable. Third, the tax burden on labour income should be reduced to slow the...

OECD Economic Surveys: Belgium 2005

The Policy Challenge

Preparing for Population Ageing