Flemings losing out from the federal government negotiations

22 July 2011

The N-VA is extremely disappointed that the CD&V and other Flemish parties are willing to negotiate further on the federal coalition agreement based on Di Rupo's memo. The informateur's bills are, for Flemings in the Vlaamse Rand (Flemish periphery), nevertheless a dramatically poor starting point for further negotiations. Furthermore, the N-VA is particularly disturbed that, in the meantime, not a single Flemish party has mentioned the social-economic and budgetary sections of the memo, even though it is absolutely full of tax increases! The recommendations from the European Commission and the OECD The Organisation for Economic Cooperation and Development (OECD), established in 1961 as a result of the Marshall Plan, is a cooperation agreement between 34 countries in order to study and coordinate social and economic policy. The member countries try to solve their problems jointly and to mutually align their international policy. The organisation also collects statistical information to make comparative analyses. These OECD analyses are a valuable basis for the N-VA to test policy against itself or even to give shape to it. OECD have been completely ignored. This is a clear decision made by the CD&V, and all the traditional Flemish parties with them. Instead of putting all the French-speakers under pressure to finally bring about institutional and financial stability, they are dropping the N-VA to create a government that will fundamentally reform nothing, and which will, in particular, levy a major amount of taxes. The N-VA finds it particularly painful for the Flemings because they will be the biggest victims of this farce. They will be saddled with astronomically high tax increases while Brussels gets a bundle of money and 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 will be increased by at least 1 billion euros.

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