Belgium’s various governments to cooperate more closely on budgetary policy
Belgium’s various governments are set to cooperate more closely on their budgetary policies in future. They are entering into an enforceable cooperation agreement setting out binding budgetary trajectories for each entity. Federal Budget minister Vincent Van Peteghem described it as a “historic” agreement.
For the first time, the federal government, the communities, the regions and the community commissions are joining forces so explicitly on the individual and binding allocation of the budgetary path. “With this agreement, we are reforming budgetary policy into a shared responsibility. All governments are assuming their roles with clear agreements and regular monitoring,” said minister Van Peteghem.
As is well known, Belgium is a federal state in which each federated entity enjoys considerable budgetary autonomy. However, international institutions, such as the European Union, view Belgium as a whole. That is why, according to Van Peteghem, coordination of budgetary policy is essential.
“The new cooperation agreement modernises the existing agreements and aligns them with the European budgetary framework. It is the first cooperation agreement with binding budgetary trajectories for each entity, which will strengthen the European Commission’s confidence in Belgian budgetary policy,” he stated.
In concrete terms, all governments will henceforth operate within a single joint European framework with individual trajectories for expenditure growth. There is a fair distribution of efforts.
"This will strengthen the European Commission’s confidence in Belgian budgetary policy"
The High Council of Finance will play a role in monitoring compliance with the plans. The governments will also cooperate more closely in drawing up the budget plans and reports for Europe.
Sanctions are also envisaged for those who fail to comply with the agreements. For instance, mandatory precautionary measures will be imposed on those in breach, such as a freeze on appropriations. Any EU sanctions will also be borne by those who breach the agreements.
Budget minister Vincent Van Peteghem © BELGA PHOTO DIRK WAEM
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