CD&V Chairman Mahdi Fires at Coalition Partners Over Budget and Centenindex

CD&V chairman Sammy Mahdi has launched a blistering attack on his coalition partners in Belgium’s five-party Arizona government, calling the controversial “centenindex” wage measure “fundamentally unjust” while insisting that finding €7 billion in budget savings is “no political science fiction.” In a wide-ranging interview with Het Laatste Nieuws, published Saturday, Mahdi outlined a detailed alternative savings plan and questioned the rapid increase in defense spending, exposing deep ideological fissures within the governing coalition ahead of a critical July 21 budget deadline.

Context: The Centenindex Dispute

At the heart of the conflict is the “centenindex” (“cents index”), a government measure that modifies Belgium’s automatic wage indexation system by capping increases for incomes above approximately €4,000 gross per month. The measure is designed to save money while protecting lower incomes, but Mahdi argues it penalizes the working middle class.

“The centenindex is fundamentally unjust,” Mahdi told HLN. “The purchasing power of the unemployed and welfare recipients is fully protected at the expense of the working middle class and half of pensioners.” He warned that if the inflation of the past five years repeats, “half of businesses could be forced to close” under the current system.

According to VRT NWS, CD&V ultimately voted in favor of the program law containing the centenindex but secured the right to revisit the issue during upcoming budget talks. Mahdi advocates instead for the alternative proposed by the “Groep van 10” (Group of 10) — the social partners representing unions and employer organizations — which would slow the impact of energy prices on the index rather than capping wage increases.

Mahdi’s €7 Billion Savings Blueprint

Dismissing claims that finding €7 billion is unrealistic, Mahdi laid out a comprehensive savings plan during the interview:

VAT reform (€3 billion): Raising the luxury rate from 21% to 22%, introducing a 9% base rate, and a 0% rate for new construction, hygiene products, and fruits and vegetables
Business subsidies (€1 billion): Cutting subsidies including the hiring incentive for first employees
Defense spending: Tempering the increase from €8 billion to €13 billion, suggesting €12 billion with phased increases
Dental care reform: Introducing third-party payment with slightly higher co-payments
Securities tax: Expanding the tax on stock portfolios above €1 million
Increased allowance reform: Reducing the “verhoogde tegemoetkoming” as proposed by N-VA, noting that even millionaires receive it
Healthcare efficiency: Addressing Belgium’s high rate of MRI scans and medical tests

“7 billion in savings is certainly no political science fiction,” Mahdi said.

Defense Spending Under Fire

Mahdi specifically questioned the rapid increase in the defense budget from €8 billion to €13 billion in a single year, arguing for a more gradual approach. He criticized Defense Minister Theo Francken (N-VA) for prioritizing American weapons, noting that Francken was seen with a book from Palantir, the controversial U.S. tech company, during an economic mission to the United States.

“The bullets flying through Brussels are just as deadly as anywhere else in the world,” Mahdi said. “But we give Justice ‘only’ €2 billion and the police ‘only’ €5 billion.” He advocated for European defense cooperation, claiming it could yield €80 billion in efficiency gains.

Personal Attacks and Political Fallout

The interview also featured pointed personal criticism. Mahdi accused Health Minister Frank Vandenbroucke (Vooruit) of distracting attention from real abuses in the sickness fund system by focusing on summer camps organized by the Christian Mutualities, while ignoring the 15,000 long-term sick people living abroad. He singled out the socialist sickness fund Solidaris, calling it “politicized” and noting its ties to the FGTB union.

Mahdi rejected the nickname “Sabotage Sammy” given by opponents, insisting his opposition is about substance, not profile. “It would be nice if the other parties wanted to discuss content,” he said.

What’s Next

The Arizona coalition faces a critical deadline of July 21 (Belgian National Day) to find €5-7 billion in budget savings. The European Commission has given Belgium until October 2026 to present a credible budget plan. With Mahdi’s public confrontation and detailed counter-proposals, the coming weeks will test whether the five-party coalition can hold together under the pressure of fiscal consolidation.

As Mahdi framed it: “Do we want to be a camel government or a reform government?”