Every year EUR 11 billion flows from the north of Belgium to the south of Belgium

Transfers The money flows from Flanders to Brussels and Wallonia are called transfers. The transfers from the federal budget, the Financing Law and social security amount to between 6 and 7 billion euros per year, and 11 billion euros if debt repayments are included. The size of the transfers is always contested by the French-speaking side or they are just referred to as normal solidarity contributions. A study by Vives (KU Leuven) revealed that the transfers did not serve solidarity, but had a paralysing effect on the growth of both the Walloon and Flemish economies. Transfers from Flanders to Wallonia amounted to more than EUR 11 billion in 2007, double the figure that is generally accepted. This was revealed by a study carried out by Vives that was made available to the weekly publication Trends for perusal. For the first time, the study also counted interest charges in with the flow of funds. Over the next few years those interest charges will continue to increase due to rising interest rates. This means that transfers in the interest charges will also increase unless a programme of cuts is introduced. “A further increase in budget deficits will result in even more transfers, for which Flanders will pay the price,” concludes Vives.