'Crisis like last year is out of the question': Flanders desperate to balance its budget

'Crisis like last year is out of the question': Flanders desperate to balance its budget
The ministers of the Flemish government. Credit: Belga/James Arthur Gekiere

On Friday (today) the Flemish government is meeting to draft next year's budget, which will take into account a plan to tackle to crises in the childcare sector as well as the nitrogen dossier.

The outcomes will be announced during Minister-President Jan Jambon's annual 'September declaration' on Monday.

Following weeks of preparatory work, the ministers of the Flemish government (rightwing N-VA, Christian-democrat CD&V and liberal Open VLD) are meeting today to conduct final budget negotiations. These will likely last through the weekend to make sure everything is in order for Jambon's (N-VA) policy statement.

"A crisis like last year is out of the question," government sources told VRT. Last year, disagreements over child benefits blocked budget negotiations causing the September declaration to be postponed for the first time ever. This year every effort is being made to ensure that things run to schedule.

Still, the childcare dossier has created significant friction between the parties in recent weeks: Welfare Minister Hilde Crevtis (CD&V) proposed additional annual investments of €330 million in the sector whilst CD&V leader Sammy Mahdi stated that without additional investment, there "would be no September declaration on Monday".

No blank cheques

While all parties recognise the need for investments, there is not consensus on the practicalities. Budget Minister Matthias Diependaele (N-VA) has insisted that "there can be no question of a blank cheque" and added that his party wants to see whether subsidies should be distributed differently. N-VA is keen to shift the focus from nurseries by increasing financial support for individuals organising childcare in their own homes.

Meanwhile Open VLD advocates allowing so-called "flexi-jobbers" to work in childcare – something not currently possible but would address the staffing crisis, the party says. The "flexi-job" scheme allows people who already have a job or are retired to work unlimited hours on the side without being taxed, meaning the gross pay is the net pay.

It is not yet clear how these differences will be settled and how much money the Flemish government will release for childcare or how funding will be allocated.

Related News

While the 'September declaration' is traditionally when the Minister-President announces new policy proposals, it is unlikely that Jambon will present any major programmes with just eight months until the 2024 elections.

N-VA is desperate to ensure that the region's budget is balanced by 2027, leaving little room for additional spending. However, it is possible that decisions will still be made on smaller dossiers and proposals.

Other issues likely to feature on the agenda are whether additional investment will go towards transport for pupils in special education and whether the Flemish government will decide on green energy certificates. Energy Minister Zuhal Demir (N-VA) wants to withdraw these from a large group of companies so that the Flemish government has to pay fewer subsidies.

Although the nitrogen dossier will not be part of the negotiations this weekend, it continues to be a pressing issue for the government. To speed up the dossier, N-VA and Open VLD decided to submit the decree through parliament without coalition partner CD&V this summer.


Copyright © 2024 The Brussels Times. All Rights Reserved.