New federal government in Belgium

Employment Law: a new approach to activation

The new government's activation policy, described as using "the stick and the carrot," aims to invigorate the labour market. This approach is expected to bring about substantial changes for employers, focusing on both incentives and stricter regulations to boost employment.

Energy: a balanced and sustainable future

The government's energy policy is geared towards developing additional production capacity and achieving a carbon-neutral energy mix. Notably, there is a renewed emphasis on nuclear power, with plans to invest in new nuclear capacity and extend the life of existing plants. Simplified decision-making processes for energy interventions in apartment buildings are also part of the strategy, aiming to make the real estate sector more sustainable.

AML and judicial updates: strengthening compliance

New measures to combat money laundering include the introduction of permanent tax and corporate regularisation, with specific rates for non-prescribed and prescribed capital. The government is also focused on speeding up judicial procedures and making them more efficient, with initiatives such as limiting the possibility of requesting a change of language and encouraging the use of Alternative Dispute Resolution (ADR).

Tax: more taxes and less taxes but in any case increased certainty

The government agreement introduces several tax measures to meet budgetary need, including a capital gains tax and changes to the participation exemption regime. At the same time, the government intends to increase tax certainty, for example by abolishing the (quasi) automatic tax increase for audit adjustments in case of a first offence.  Measures that support innovative and green investments and that make the group contribution system more flexible are expected to have a positive impact on the business environment.

Commercial & cyber law: a digital agenda for the future

The government's digital agenda includes measures to fight fake news and impose more responsibilities on online platforms. A stricter legal framework for influencers is also in the works. The BIPT will become the new regulator for AI under the AI Act, which regulates the use of AI solutions based on their risk. Cybersecurity and the fight against cybercrime are emphasised, with plans to use ethical hackers. Consumer protection measures include extending the legal warranty period for certain products to three years and making it easier for consumers to switch between insurers and suppliers.

Public law: managing holdings and simplifying procurement

Despite initial talks of privatisation, SFPIM will continue to play a central role in the Government’s intervention in strategic sectors. The Federal Buildings Agency will need to become leaner and more professional.  At the same time, it will launch an ambitious programme to renovate the buildings of the Federal administrations to meet European sustainability commitments by 2050. Public procurement rules will be simplified to increase SME participation, and an inter-federal knowledge and expertise centre will be established to facilitate interaction with the European Commission. The government also aims to pay more promptly and reduce the use of external consultants.

Corporate law and M&A: modernisation and market impact

The potential impact of the coalition agreement on company law and M&A practice is significant. While no major upheavals are expected, there is room for further modernisation and simplification of the Companies and Associations Code. The introduction of a capital gains tax has caused anxiety among entrepreneurs, leading to a higher volume of transactions. The tax would apply to future realised capital gains on financial assets, and its implementation should respect legal certainty and accumulated rights. The coalition agreement also prioritises the elaboration of the capital market union and administrative simplification to increase accessibility to capital markets.