Belgian Socialists Dismiss Odoo CEO Wealth Tax Threat

The Belgian Socialist Party (PS) has dismissed threats from Odoo CEO Fabien Pinckaers to leave the country over a proposed wealth tax, with a spokesperson remarking that “we’ll end up crying hearing him.” The PS has also signaled it is open to supporting the centrist party Les Engagés’ proposal for a progressive tax on high-value financial assets, challenging them to submit a formal bill to parliament.

Background: A Budget Crisis and a Tax Proposal

The debate unfolds against the backdrop of a severe federal budget crisis. Belgium’s government must find between €7 billion and €10 billion — with some estimates reaching €14 billion — to meet EU deficit targets of 3% of GDP by 2029, as reported by La Libre Belgique.

On June 22, Les Engagés clarified their proposal for a progressive annual tax on financial assets (excluding real estate): 0.15% on assets between €500,000 and €1 million, 0.30% between €1 million and €2 million, 0.45% between €2 million and €3 million, and 0.60% on assets exceeding €3 million.

Pinckaers’ Warning

Fabien Pinckaers, the billionaire founder and CEO of Odoo — a Walloon tech unicorn valued at approximately €10 billion — published a rare political statement on LinkedIn on June 24. Opening with “Adieu la Belgique!” he warned that his only option would be to leave Belgium if the proposal passed, as reported by La Libre Belgique.

Pinckaers estimated he would owe over €30 million per year in taxes under the proposal, despite having only approximately €100,000 in his bank account. “The wealth of the richest is not money in an account to go on vacation,” he wrote. “It’s shares in companies.” He emphasized that Odoo contributes roughly €323 million in annual exports, €100 million in annual tax revenue, and supports approximately 15,000 direct and indirect jobs in Belgium.

Political Reactions

PS Response: Federal deputy Frédéric Daerden told Bel RTL radio on June 25 that the PS is prepared to support Les Engagés’ proposal from the opposition. He directly challenged the centrist party to submit a formal bill: “Be courageous!” A PS spokesperson dismissed Pinckaers’ threat with the remark: “We’ll end up crying hearing him,” as reported by La Libre Belgique.

Verougstraete’s Response: Yvan Verougstraete, president of Les Engagés, responded to Pinckaers on June 24 by arguing that “everyone must contribute to the effort” given the current budget context, while stating he is “open to discussion,” as reported by La Libre Belgique.

MR Opposition: Georges-Louis Bouchez, president of the liberal MR party, firmly opposed the tax, stating: “It’s the state that must slim down.”

Prime Minister’s Caution: Prime Minister Bart De Wever (N-VA) called on party presidents to avoid “too crazy proposals” in the budget context, likening his role to that of Sisyphus: “Sometimes I feel like Sisyphus, pushing the ball only to see it roll back down immediately.”

Analysis: Coalition Tensions and the Wealth Tax Dilemma

This debate exposes significant tensions within Belgium’s governing “Arizona coalition,” which includes N-VA, MR, Les Engagés, CD&V, and Vooruit. Les Engagés is differentiating itself from the more liberal MR by proposing progressive taxation, while the PS positions itself as a pragmatic opposition force supporting the measure from the sidelines.

The exchange also highlights the classic tension between taxing illiquid wealth and risking capital flight. Belgium currently has one of the highest tax burdens globally but no broad wealth tax, making this proposal a potential precedent. Pinckaers’ argument — that taxing unrealized gains in company shares could force entrepreneurs to sell equity or relocate — resonates with broader debates in European tax policy.

What’s Next

The outcome of this debate may depend on the Monitoring Committee’s budget report expected on July 6, which will provide updated fiscal projections. That report will shape the urgency and scope of budget negotiations, potentially determining whether Les Engagés’ wealth tax proposal gains traction or is set aside in favor of alternative measures.

For now, the ball is in Les Engagés’ court — as the PS has challenged them to turn their proposal into concrete legislation.