The Flemish Parliament Member and Member of Parliament for Finance at Bruges Mercedes Van Volcem (Open VLD) is proposing to halt the rapid increase in wage costs by interfering with the automatic wage index mechanism. “Doing nothing will lead to a downward spiral of price increases and stagnation, which will lead to mass impoverishment,” she says.
source† BELGA
According to Van Volcem, the indicators should be net, not aggregate. Indexing is suggested only on the first tranche of the total 2,500 or 3,500 euros instead of the full salary. “After all, not all costs are subject to inflation,” she explains. “For example, the cost of housing can be fixed: the loan is not indexed.”
“It’s not a good idea, but if we don’t want to end up in a recession, we have to do something. We have to stop the inflationary spiral. A solution has to be found,” says Van Volsem. “Tough times require courageous and decisive decisions.”
Van Volsem also points out that higher costs also affect the city’s finances. “For Bruges, for example, the indicator means 6 million euros on an annual basis. In a multi-year budget, this is 18 million euros. Energy costs save an additional 3 million euros. Only part of that is recovered in personal income tax. “
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