Federal budget: energy still at the center of the debates – Economic Policy

Last Sunday, the Minister of Energy, Tinne Van der Straeten, submitted to his colleagues a proposal for taxing the excess profits made by companies in the sector which goes beyond the minimum framework drawn up by Europe. It recommends taxing income above 130 euros per MWh over a two-year period extending from January 1, 2022 to December 31, 2023 where the EU provided for a ceiling of 180 euros and a period from December 1, 2022 as of June 30, 2023. The revenue estimate for this year and next is €4.7 billion.

Behind the scenes of government some fear that by going too far outside the European framework, the system will be fragile from a legal point of view. Tuesday, in parliament, the MR expressed his “concern”. On Saturday, the CD&V Deputy Prime Minister and Finance Minister, Vincent Van Peteghem, recalled his demand for a solid taxation mechanism and his desire to remain within the European framework, “clear”, according to him.

The environmental minister maintained her proposal and on Saturday provided clarifications in a select ministerial committee. Sunday, when she arrived rue de la Loi, she recalled that the European framework was a minimum. “It’s everyone’s wish to have the most robust system possible,” she added.

The Greens reaffirmed their support for this formula. “Tinne Van der Straeten’s proposal is really very solid”, assured the Vice-Premier Ecolo, Georges Gilkinet. “There are superprofits in the energy sector. We really have to be proactive to capture them and be able to redistribute them. The more superprofits we can capture, the more we can redistribute them, and the more positive it is for our citizens and our businesses, including SMEs and artisans who are suffering today”.

The PS also calls for an ambitious system. “We are pushing a plan in line with that of the Minister of Energy, which is as ambitious as possible. There is an issue of justice in this debate: it is unacceptable that some people are gorging themselves while people are in difficulty “, said Secretary of State Thomas Dermine on the set of “It’s not every day on Sunday” (RTL-TVi).

Other proposals in the field of energy are on the negotiating table, in particular the extension of the social tariff. The ministers should reach an agreement in principle on this point, which will then be implemented in the weeks to come.

Federal ministers will also discuss the competitiveness of Belgian companies which, in addition to the cost of energy, must assume the indexation of wages. Several proposals are on the table, such as a postponement or suspension of the payment of contributions to the National Social Security Office (ONSS) as well as a tax exemption of the index, a liberal proposal which has already aroused socialist hostility. The Vice-Premier MR, David Clarinvalhowever reiterated it on Sunday.

“If we don’t help companies, especially in the face of theindexingwe are going to have bankruptcies, thousands of people out of work,” he warned.

Last Sunday, the Minister of Energy, Tinne Van der Straeten, submitted to her colleagues a proposal to tax the excess profits made by companies in the sector which goes beyond the minimum framework drawn up by Europe. It recommends taxing income above 130 euros per MWh over a two-year period extending from January 1, 2022 to December 31, 2023 where the EU provided for a ceiling of 180 euros and a period from December 1, 2022 as of June 30, 2023. The revenue estimate for this year and next is €4.7 billion. Behind the scenes of the government, some fear that by going too far outside the European framework, the system will be fragile from a legal point of view. Tuesday, in parliament, the MR expressed his “concern”. On Saturday, the CD&V Deputy Prime Minister and Finance Minister, Vincent Van Peteghem, recalled his demand for a solid taxation mechanism and his desire to remain within the European framework, “clear”, according to him. The environmental minister maintained her proposal and provided clarifications in a select ministerial committee on Saturday. Sunday, when she arrived rue de la Loi, she recalled that the European framework was a minimum. “It’s everyone’s wish to have the most robust system possible,” she added. The Greens reaffirmed their support for this formula. “Tinne Van der Straeten’s proposal is really very solid”, assured the Vice-Premier Ecolo, Georges Gilkinet. “There are superprofits in the energy sector. We really have to be proactive to capture them and be able to redistribute them. The more we can capture superprofits, the more we can redistribute them, and the more positive it is for our citizens and our businesses, including SMEs and artisans who are suffering today”. The PS also calls for an ambitious system. “We are pushing for a plan in line with that of the Minister of Energy, which is as ambitious as possible. There is an issue of justice in this debate: it is unacceptable that some are gorging themselves while people are in difficulty “, said Secretary of State Thomas Dermine on the set of “It’s not every day on Sunday” (RTL-TVi). Other proposals in the field of energy are on the negotiating table, in particular the extension of the social tariff. The ministers should reach an agreement in principle on this point, which will then be implemented in the weeks to come. The federal ministers will also discuss the competitiveness of Belgian companies which, in addition to the cost of energy, must bear the indexation of wages. Several proposals are on the table, such as a postponement or suspension of the payment of contributions to the National Social Security Office (ONSS) as well as a tax exemption for the index, a liberal proposal which has already aroused socialist hostility. The Vice-Premier MR, David Clarinval, however, reiterated it on Sunday. “If we don’t help companies, especially in the face of indexation, we will have bankruptcies, thousands of people unemployed,” he warned.