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New Flemish Government will have to find 600 million euro to balance the budget

One it is formed the new Flemish Government will have to find 600 million euro in order to prevent the Flemish budget going 600 million euro into the red. The figures come from the Flemish Budget Department and appear in an article in Wednesday’s edition of the financial daily ‘De Tijd’. 

The news will make reaching an agreement on the formation of a new Flemish Government all the more difficult.

A few months ago the then Flemish Budget Minister Bart Tommelein (liberal) said that by the end of the forthcoming legislature (in 2024) the Flemish Government would be able to spend 1 billion euro providing that the new Flemish Government continue to pursue the same budgetary policies. Mr Tommelein based his assertion on the figures from the Flemish civil services’ multi-year budget projections.        

However, in the preparatory notes it has given to the parties ahead of negotiation for the formation of a new Flemish Government, the Flemish Civil Service no predicts that if current policies continue to be pursued the Flemish budget will dip 600 million euro into the red next year.    

The there are several reasons for the new more pessimistic budget forecast. First of all the Federal Planning Bureau has revised down its growth projections. Furthermore, revenue from some taxes are lower than expected.