Financing Law

The Belgian Financing Law - officially the Special Financing Law of 16 January 1989 - establishes how money is distributed between the Federal State and the Regions and Communities in Belgium. The Di Rupo Government, which included Groen and Ecolo (the Dutch- and French-speaking Green parties), adapted the law based on the political agreement in the summer of 2013. This was done without consulting the regions. The revision results in the cash flows, which are linked to the transfer of powers, being less Inflation The increase in the general price level. The original meaning (literally “to blow up”) is monetary inflation, which means that the amount of money increases. Today, inflation primarily refers to price inflation. This means an implicit monetary depreciation. This causes the purchasing power to drop. inflation-proof. In addition to this, extremely heavy efforts were imposed on the regions in order to help close the gap in the federal budget.