Mahdi Claims €7B Savings Achievable in Belgian Budget Push

CD&V party leader Sammy Mahdi has launched a sharp public offensive against his coalition partners in Belgium’s federal government, claiming that finding an additional €7 billion in budget savings is “certainly not political science fiction.” In an extensive interview with Het Laatste Nieuws, Mahdi outlined a series of bold proposals that have intensified already-fraught negotiations within the so-called “Arizona” coalition government.

The Centenindex Dispute

At the heart of the conflict is the “centenindex” — a government measure that partially limits automatic wage indexation for incomes above approximately €4,000 gross per month. CD&V has opposed this measure, instead favoring an alternative proposed by the “Group of 10,” Belgium’s social partners representing unions and employers’ organizations.

Mahdi argued that the centenindex is “fundamentally unjust,” protecting the purchasing power of the unemployed and welfare recipients at the expense of the working middle class and half of all pensioners. “If half the businesses have to close, there you’ll be with your Che Guevara t-shirt,” Mahdi said, taking aim at socialist coalition partner Vooruit.

CD&V ultimately voted for the centenindex in parliamentary committee but pledged to revisit the issue during budget negotiations. The final vote, originally scheduled for May 21, was delayed to May 28, 2026.

Mahdi’s €7 Billion Blueprint

In the interview published May 23, Mahdi laid out a detailed roadmap for achieving the €7 billion in savings required by the government’s July 21 budget deadline:

VAT reform — Raising the luxury rate from 21% to 22%, introducing a 9% basic rate (replacing the current 6% and 12% rates), and a 0% rate for new construction, hygiene products, and fresh produce. Estimated yield: €3 billion.
Business subsidies — Cutting corporate subsidies, including the first-employee hiring subsidy. Estimated yield: €1 billion.
Dental co-payment reform — Introducing a third-party payer system with slightly higher co-payments.
Defense spending — Tempering the increase from €8 billion to €12 billion rather than the planned €13 billion.
Management companies — Addressing abuses in management company structures.
Increased allowance reform — Reducing the “verhoogde tegemoetkoming” (increased healthcare allowance) for wealthy recipients.
Securities tax — Expanding the tax on stock portfolios above €1 million.
Healthcare efficiency — Reducing unnecessary medical procedures.

“Saving €7 billion is certainly not political science fiction,” Mahdi said.

Defense Spending Debate

Mahdi’s questioning of the rapid increase in defense spending — from €8 billion to €13 billion in a single year — has drawn particular criticism from coalition partners. He cited retired Colonel Roger Housen’s skepticism about the necessity of expensive missiles to counter cheap drones, and called for greater European cooperation in defense procurement.

N-VA chair Valerie Van Peel dismissed Mahdi’s defense proposals as “balloons that aren’t even worth discussing.” Van Peel insisted that “this is not the time to go back on agreements made.”

Coalition Dynamics Under Strain

The “Arizona” coalition — comprising N-VA, Vooruit, MR, CD&V, and Les Engagés — is showing significant strain as budget negotiations intensify. Mahdi has been nicknamed “Sabotage Sammy” by opponents who accuse him of publicly opposing measures that CD&V ultimately votes for in parliament.

Mahdi rejects this characterization, framing his approach as legitimate political debate. “Do we want to be a camel government or a reform government?” he asked. “We created this government to make major reforms. Then you hope we don’t abandon any reform.”

Vooruit chair Conner Rousseau and Minister of Health Frank Vandenbroucke have defended the centenindex as protecting the lowest incomes, while MR chair Georges-Louis Bouchez has expressed skepticism about the feasibility of tax cuts given the budget gap.

What’s Next

The government faces a July 21 deadline for a comprehensive budget agreement. The centenindex vote on May 28 will be a critical test of coalition cohesion. If CD&V follows through on its pledge to revisit the issue during budget talks, the coming weeks could see intense negotiations over the party’s alternative proposals.

Meanwhile, the social partners have signaled that their alternative to the centenindex — calculated by the Central Economic Council to yield €100-133 million more per year than the government’s measure — remains on the table. If the government rejects it, unions may escalate industrial action.

For Mahdi, the stakes are high. His aggressive public positioning risks further alienating coalition partners, but also positions CD&V as the defender of the middle class and social dialogue — a narrative that could prove valuable as Belgium’s next federal elections approach.