According to Van Volcem, the indexation should be net and not gross. She proposes to only index on a first bracket of 2,500 or 3,500 euros gross instead of on the full salary. “After all, not all costs are subject to inflation,” she explains. “For example, the housing cost can be fixed: the loan is not indexed.”
“It’s not a nice idea, but if we don’t want to end up in a recession, we have to do something. We have to stop the inflation spiral. There has to be a solution,” said Van Volcem. “Tough times require courageous and decisive decisions.”
Van Volcem also points out that the higher costs also weigh on city finances. “For Bruges, for example, the indexation means 6 million euros on an annual basis. In a multi-year budget that is 18 million euros. The energy costs provide another 3 million euros. Only part of this is recovered in the personal income tax.”