Even though the Belgian horticultural sector had a relatively good year last year, today the market is on the brink of total collapse. Most of the vegetables sold at the auction houses in Asse, Kampenhout, Roeselare and Sint-Katelijne-Waver yesterday were sold at under half the price they fetched in the summer of 2008. The reason for this is a massive oversupply across Europe, thanks in part to the good weather, forcing prices to an exceptionally low level. The consumer may be benefiting, with prices for summer produce down by up to half, but the growers are in dire straits. Belgian fresh produce markets are now compelled to `destroy' thousands of tons of chicory, lettuce, tomatoes, courgettes and cucumbers, because they cannot sell them. The vegetables are not literally `destroyed', with the Food Bank and the Public Social Welfare Centres taking what they want and the rest going to fertiliser or cattle feed. For the growers the low prices are a disaster. 'If the price does not go up in autumn, many agricultural companies will find themselves in big trouble,' agricultural analyst Luc Busschaert has warned in the newspaper Het Laatste Nieuws. The crisis can only be dealt with at a European level, he says, because the overproduction is a factor in many countries.

Three months after being released from a Belgian prison Leonardo Notarbartolo, the mastermind behind the Antwerp diamond heist of the century, has been arrested in Milan. Notarbartolo, who spent six years in prison in Belgium, was stopped for a routine check and authorities found one kilogram and 15 grams of diamonds in his brand new BMW, with a total value in the region of ten million Euros. The discovery is the first sign of the enormous take of 100 million Euros stolen in the `heist of the century'. Expert analysis will now prove whether or not these are the same diamonds that disappeared from the basement safe of the Antwerp Diamond Centre in 2003. Detectives from Antwerp will travel to Milan next week to provide support to their Italian counterparts in the tests. But, according to Notarbartolo's lawyer, the discovery concerns diamond waste - fine diamond powder - which is barely worth 10,000 Euros. He says his client has certificates that prove he bought the diamond powder legally in London. Coincidentally, two of his companions are due to be released from Italian prisons this week, Pietro Tavano and Ferdinando Finito, who managed to bypass the security system in the Diamond Centre safe. Only Elio D'Onoro, the gang's electronics expert, is still in prison in Belgium.

The Belgian dredging company Jan De Nul has been awarded, together with a consortium of contractors consisting of the Spanish Sacyr Vallehermoso, the Italian Impregil and the Panamanian company Cusa, the major Panama Canal contract. The contract will result in 100 million dollars in dredging works over the next few years for the Belgian corporation. In addition, there will also be a great deal of work in the contract for the company's construction division, with six new locks to be built. The design of the locks is a carbon copy of the Berendrecht lock in the Port of Antwerp, which De Nul helped build in the 1980's and the company still has engineers and specialists who were part of that project. Between six months' and a year's worth of analyses and engineering will be required before construction can effectively start. The new contract is not, however, sufficient to compensate for the loss of activities De Nul has suffered in the Middle East, Dubai in particular.

The recession has resulted in evermore families struggling to pay their debts, figures released by the National Bank show. Overdue payments increased in the first half of 2009 by 9.2 percent to reach 2.03 billion Euros, while arrears on mortgage loans increased by a greater rate than those on consumer credit. Mortgage arrears were up by 17.7 percent to 650 million Euros, while overdue payment of consumer credit was up 5.7 percent to 1.38 billion Euros. It was not so much the number of families in debt that grew, but rather the level of the debt, and so the average amount outstanding for each individual case has increased dramatically. The reason behind this lies in the recession, with both increased unemployment in the first six months of the year as well as the many wage-earners now working under the so-called temporary unemployment system who have lost much purchasing power. The boom years and the establishment of a positive credit database resulted in a decrease in non-payments between 2004 and 2007. The credit database registered not only the bad credit but also the other loans, so that the bank could gain improved insight into the financial health of loan-applicants. The spectacular increase in 2009 means that overdue payments have already exceeded the previous record in 2003. But the fact that people are also saving large amounts indicates that most families are not yet in financial trouble, although - given that by the end of 2010 another 100,000 jobs might be lost - De Tijd newspaper does expect the number of defaults to continue increasing at a comparable rate.

With 66 `yeas' and 51 `nays' the new Flemish government won the confidence of the Flemish Parliament yesterday. Parliament spent the entire day in session, debating the coalition agreement for the Peeters II government. Sven Gatz of the Open VLD opposition said the coalition agreement was excessively imperious, the budget lacked clarity and concluded that taxes skyrocket the moment that liberals are out of government. In the latter he made reference to the significantly reduced job rebate, the liberals' favourite asset. But Gatz could not go too far because just a few weeks ago, during coalition talks, his party approved the larger part of the memorandum drafted by Minister-President Kris Peeters that eventually led to the governing agreement. Vlaams Belang spokesman Filip Dewinter said he was primarily disappointed by the ambitions of the Flemish government when it came to state reform, but N-VA chairman Bart De Wever vigorously defended the Flemish strategy of getting the francophone south to the negotiating table. LDD parliamentary leader Lode Vereeck labelled the Peeters II coalition a 'leftwing trade union government' meddling in every aspect of society. Parliamentary leader for the greens, Filip Watteeuw, in turn compared the coalition to a political Lions Club. Groen! has, just like the LDD, a problem with the fact that two members were not elected but rather added to the government under the guise of experts - criticism that applies in particular to Philippe Muyters (Minister of Finance, Budget and Work) and Ingrid Lieten (Poverty Alleviation, Public Enterprises and Media). The green-minded initiatives adopted by the government were considered too light by Groen!, resulting in a lively debate with the SP.A, which is responsible for a part of the environmental emphasis in the government agreement.

The brand new Flemish culture minister Joke Schauvliege did not make a great first impression on broadcaster VRT's news magazine ter Zake. She frankly admitted that she knew nothing about the culture department she will soon be heading and that it had been some six months since she had last seen a play - one hosted by an amateur troupe in her village - while as a new mother she has had no time whatsoever to read a book of late. Her comments were not well-received in the cultural field and indignant letters in the newspapers appeared, with writers Tom Lanoye and Erwin Mortier believing her statements were evidence of a glaring lack of knowledge in the field. De Standaard newspaper says that the appointment of Schauvliege proves the ministerial post is still not really claimed by any minister, but rather a type of residual competence, with the future minister herself surprised at being saddled with the portfolio. This means she will have to become familiar with the matters at hand, with her previous experience being largely in the fields of organisational and voluntary work. But the protests vocalised by Lanoye and Mortier are somewhat premature, De Standaard opines, because the minister will ultimately have to be held to account on the basis of her actions in terms of policy and her knowledge of the issues. Moreover, culture policy is not devised by ministers alone, but also by the sector itself. Schauvliege is after all not the first minister to start the job with a blank page. Patrick Dewael in the late 1980's and the previous culture minister Bert Anciaux did that too, both of whom surrounded themselves with good advisors. Schauvliege would do best to follow that example too, says the newspaper.

The PS announced Wednesday evening that Rudy Demotte is to stay on as minister-president of the Walloon government and of the French-speaking community, while Charles Picqué will continue to head the Brussels Capital-Region. PS chairman Elio Di Rupo stated that the PS will - given the major budgetary, social and economic challenges - concentrate on fixed values. This entails experienced ministers and members of parliament who have already demonstrated their qualities, he said. Demotte will take on another two experienced ministers and two newcomers. Jean-Claude Marcourt will assume the deputy minister-presidency in both Wallonia and the French-speaking community, as well as the Economy, Higher Education and Foreign Trade ministries. He will also be in charge of coordinating the so-called 'pôles de compétitivité', a priority in the extant `Marshall Plan'. Fadila Laanan will stay on as Minister of Culture, Audio-Visual Media and Healthcare in the French Community with the two newcomers being the regional members of parliament Paul Furlan and Elianne Tillieux. Furlan will be Walloon Minister for Domestic Administration and Tourism while Tillieux is to take over the Walloon mantle for Public Health and Social Affairs. Ecolo is in turn to delegate current parliamentary leader Jean-Marc Nollet to the Walloon government where he will be running the large Sustainable Development department, with Philippe Henry becoming the other Ecolo minister for the region, in charge of Environment, Spatial Planning, Mobility and Transport. Further north in the Brussels Capital-Region, Evelyne Huytebroeck stays on as Minister of Environment and Energy, with the addition of the Urban development portfolio. The other Ecolo post there goes to Christos Doulkeridis, who will become state secretary for Housing and Taxis. Both Nollet and Huytebroeck will also be in the French Community government.Finally also CdH revealed the names of its ministers. In the Walloon region Benoît Lutgen becomes minister of Infrastructure, Agriculture and Nature. André Antoine replaces the PS minister Michel Daerden as minister of Budget and Finance, whereas Marie-Dominique Simonet is responsible for Education in the French Community Government and Benoît Cerexhe remains the minister of Economy, Foreign Trade, Work and Scientific Research in the Brussels government. The Flemish members of the Brussels government are Jean-Luc Vanraes (Open VLD) on Finance and Budget, Brigitte Grouwels (CD&V) on Public Works, who shares public transport with Bruno Delille (Groen!), who will concentrate on infrastructure for cyclists.

The first half of 2009 has been a disenchantment for the Antwerp harbour, following a period of uninterrupted growth. The published half-yearly figures show that total transhipment in the first six months fell back by 20 percent to 77 million Euros, or over 19 million tons less than in the first half of 2008. One consolation the port authorities report is that the strike in the French port of Le Havre which went on for weeks favoured the traffic in the Antwerp port to an exceptional extent in the spring of 2008. The sluggish harbour traffic of the last year has also resulted in the number of unemployed dockworkers jumping from 300 to 1,400. When it comes to dry bulk such as ore (down 61.5 percent), coal (down 42.8 percent) and fertilizer (down 48.9 percent), the downturn is so large it can be labelled an industry collapse. Container traffic - the area in which large amounts have been invested in recent years - was down 18.5 percent. Traffic at the MSC terminal on the Delwaide Dock managed to hold its own, but that only made matters worse at the Scheldt terminals of the new Deurganck Dock, where volumes have been halved in the wake of a number of container services from Asia dwindling from 13 to a mere six since September last year. This also puts Antwerp behind with respect to its immediate rivals, Rotterdam and Zeebrugge. Rotterdam still services 23 container lines and Hamburg 21, while Antwerp has recently also lost a container service to the Zeebrugge port. But Rotterdam has not been spared either, with a dramatic downturn (13.4 percent) to 173 million tons in the first six months of the year. The biggest cause of this is due to shrinking trade with China.

The socialists, environmentalists and liberals are all imposing tough conditions when it comes to the re-election of José Manuel Barroso as president of the European Commission. Guy Verhofstadt, liberal parliamentary leader in the European parliament, has put up five priorities that Barroso will have to include in his agenda should he want the support of the liberals. Verhofstadt firstly wants a 'decent' European recovery plan because the Union will never solve the crisis with '27 national recovery plans', as the former Belgian prime minister says. The liberal is further demanding a powerful supervision of the financial markets, a budget with European taxes, more European diplomats, greater European defence acquisitions and a European commissioner for human rights. Barroso says that the present European recovery plan is the best that could be reached with 27 national banks, budgets and ministers of finance. The government leaders of the 27 member states would have liked the European Parliament to vote on Barroso this week, but the majority of parliament voted against it.

At 11:00 today the federal Prime Minister Herman Van Rompuy will introduce his re-shuffled team after the departure of Minister of Foreign Affairs Karel De Gucht to the European Commission. What is certain is that former CD&V prime minister Yves Leterme will take over from him, while present Christian democrat minister of public enterprises Steven Vanackere will continue as deputy prime minister. In the wake of De Gucht's departure, the Flemish liberals were compelled to find a new deputy prime minister, and that is set to be Guy Vanhengel, minister for Budget and Finances in the last Brussels government. That portfolio will be occupied by fellow party member Jean-Luc Vanraes in the new Capital-Region government. Vanhengel's portfolio is not yet known, nor which Open VLD-minister will have to make way for him. Of note is that leading Walloon vote-taker Michel Daerden is making a federal level comeback, taking over Pensions and Urban Policy from Marie Arena, who is out of the government. The PS is also replacing State Secretary for Disabled Persons Julie Fernandez Fernandez with Philippe Courard, who has resigned as Walloon minister. It is not yet clear who will be inheriting Social Integration and thus the problematic reception of asylum-seekers from Arena.

CD&V Senator Nahima Lanjri denounced that the competent ministers Annemie Turtelboom (Open VLD) and Marie Arena (PS), for immigration and integration respectively, have known for a long period that the reception centres for asylum-seekers would become overpopulated but did nothing about it. She already warned that the asylum centres might become overcrowded last year, and now some 700 asylum-seekers are lodged in thirty-euro-a-day hotels, children are sleeping in railway stations and the circular from Turtelboom, which is supposed to `regularise' the residence of thousands of illegal aliens who have been living in the country for an extended period, has still not been sent out. Fedasil, the agency responsible for accommodating newcomers, gave up and shut its doors because it could not find any further space for asylum seekers. But Arena soon ordered them to reopen and send the asylum-seekers to hotels. The minister was compelled to do so since she had to pay a penalty for every asylum-seeker who had not been offered a proper place. There has never been so much obstruction as there is now, Lanjri says. There is a game of majority and opposition being played within the government and so, if Arena cannot find any additional accommodation, part of the reason for that is the blocking tactics employed by Turtelboom, the senator says. Lanjri predicts that the circular containing the criteria for regularisation - on which a definitive decision must be reached this weekend - will not miraculously solve the problem of the reception of asylum seekers. Also, it will take months to work out the details of the regularisation. This means that hundreds of additional beds will have to be found until the end of the year, she warns. At least a solution will have to be in place for the conflict between the governing parties before the ministers leave on holiday, she says. The current deadlock is attracting illegal residents from neighbouring countries, who are wrongly hoping that their residence in Belgium will be regularised, the CD&V senator says.

The organisations protesting against the construction of the Lange Wapper bridge have managed to collect sufficient signatures in Antwerp to force a referendum on the issue on October, the 18th. By the end of last month the not-for-profit association Ademloos (which means `breathless') submitted 66,158 signatures to the city hall. Mayor Patrick Janssens was suitably impressed, this being the very first time that a referendum is to be held in Antwerp, even if the results of the poll are not binding with the final decision still in the hands of the Flemish government. The choice that will have to be made on 18 October is one between the route drawn by the Beheersmaatschappij Antwerpen Mobiel (BAM) - a combination of tunnel and bridge (the Lange Wapper) that would be constructed close to the city centre - and a tunnel from the left bank of the Scheldt to Ekeren, which is further out of town. The latter proposal comes from the consultancy Arup-SUM. The advantage of the BAM project is that work on the bridge can start sooner, but bridge traffic will result in considerable environmental nuisance and pollution. There is also a third proposal from the Actiegroep Straten-Generaal shifting the route even further to the north, sparing the inhabited parts of the city. While there are actually four official proposals, it will most probably boil down to the proposal from BAM and the one from Arup-SUM.

Guy Vanhengel, until recently the minister for Budget and Finances in the Brussels regional government, is to become the deputy prime minister in the federal government. Together with liberal parliamentary leader in the Flemish parliament Sven Gatz, he oversaw gains for the party in the Brussels Capital Region elections, which was practically the only place in the country where the Open VLD advanced. Gatz as liberal faction leader in the Flemish parliament has recently become a frequent spokesperson for the party and now Vanhengel has received his promotion too. He is the new federal level liberal, replacing the minister of Foreign Affairs Karel De Gucht when he departs for Europe on 16 or 17 July. As deputy prime minister in the federal government he will also be the guardian of the federal budget. The administration of the treasury is currently in the hands of CD&H state secretary Melchior Wathelet, who worked under the guardianship of Prime Minister Herman Van Rompuy. The prime minister has however transferred this responsability to Vanhengel, who can keep an eye on the budget and even veto it. Vanhengel is no stranger to the territory, having succeeded in sorting out the budget in Brussels and removing the anomalies, although the budget never ended up being balanced. The federal budget is, of course, a different kettle of fish, with a deficit threatening of 17 to 20 billion Euros, or five to six percent. As deputy prime minister his first job will be to help in solving the asylum issue, currently in a deadlock in which fellow party member Annemie Turtelboom is firmly stuck.

Cocaine-users tend to be revolving-door customers at rehabilitation clinics, often reverting to the habit once again after receiving therapy resulting in a renewed withdrawal programme once more. In order to break this vicious circle, the drug rehabilitation centre the Kiem in Ghent has now opted for a different approach to treatment, one which started in the United States. Cocaine addicts in the US are rewarded if they stay off drugs for six months during their therapy. A saliva test is taken two to three times a week in order to verify whether they are indeed clean and, each time they test negative, they receive a monetary reward. The longer they are clean, the higher the amount and those who undergo the entire six-month treatment without taking cocaine can make a total of 1,268 Euros. Those who succumb to the drug during the treatment must start from the very beginning once more. The money the addicts make comes in the form of vouchers for cinemas, saunas or gym memberships, sports equipment, food coupons and the like. 'Cocaine-users become addicted because the drug stimulates the reward-oriented part of their minds,' Dirk Vandevelde of the Kiem said when asked why the programme produces results. 'So why shouldn't rewarding good behaviour not be a stimulation to stop using drugs?' Vandevelde does not fear abuse of the rewards. Addicts are also taught how to refuse drugs. And with the aid of the centre, they must also try to once again get their lives back on track by looking for work, suitably education, accommodation or childcare facilities.

Absenteeism in business and industry as a result of swine flu could, in a worst case scenario, amount to 70 percent, according to a document from the Influenza Commission. This is the so-called Business Continuity Plan, which is intended to help companies in dealing with a pandemic. It is assumed that between five and 35 percent of employees will actually become sick, while an equal number of employees will stay at home in order to care for sick family members. These figures are based on UK estimates, which have been extrapolated for Belgian purposes. Should the extent of the pandemic be limited to five percent, then absenteeism will not exceed levels experienced for standard seasonal flu, says Piet Vanthemsche, chairman of the Farmers' Union who will be leading the influenza working group made up of employers and trade unions. According to the Influenza Commission the number of infections will peak towards the end of August when many Belgians return from holidays abroad. Hospitals and other healthcare services, the police and communication services such as the internet and telephony will most likely experience peak usage then, while sectors such as tourism, culture and the catering industry will dip. Companies are to receive a brochure containing tips on keeping the possibility of infection to a minimum, along with a checklist to assist in limiting the consequences of increased absenteeism. In the meantime, healthcare experts are trying to subdue any panic. There's no reason whatsoever to stay away from summer events like festivals,' they are saying. 'You could contract swine flu just as easily at your local supermarket.'

The major portfolios of budget, finances, work and spatial planning aside, the brand new Flemish minister Philippe Muyters (N-VA) will also be taking on Sport. This is no coincidence, as Muyters himself enjoys playing sport and keeps himself in great condition, on the home-trainer daily from 5:30 to just before six and having played basketball, football and volleyball. His party, the N-VA, is arguing for the creation of a Low Lands League by 2015 for various sports. Muyters has promised to adopt an approach that will be a combination of pragmatism with a Flemish approach. He has not yet had time to draft a policy memorandum, but emphasis should be as well on sport for everyone as on professional top-class sport, he claims. And while there are plans enough, as is evident from the governing agreement, the real issue will be implementing them, he feels.

Belgium's biggest carpet manufacturers, Beaulieu International Group (BIG) and Balta Industries, were hit with heavy losses last year. Especially at BIG the loss was considerable with 72.4 million Euros in the rede, because the Beaulieu group only started restructuring once the crisis had already hit. In May last year the company restructured the yarn division, Filartois, and closed the carpet weaving plant Beaulieu Weavers in northern France. BIG had already made cuts by halting the production of woven carpets in 2007 as well as closing the carpet yarn factory in Ninove. A BIG-Balta merger is, according to observers, the only way in which better pricing can be achieved, in particular with regard to the British market. Each company employs in the region of 3,000 people. But chief shareholder of Balta, Doughty Hanson, seems to believe that greater salvation will come in selling Balta to the American company Mohawk.

Flanders, Wallonia and Brussels have all reached governing agreements. In Flanders the government team was already sworn in yesterday in the Flemish Parliament. On the contrary it is not yet known who will assume the ministerial posts in Brussels and Wallonia, but a comparison between the three regional coalition agreements does highlight some interesting results, the newspaper De Tijd opines. The major difference is evident in the budgets. In Flanders, a balanced budget has been promised by 2011 and a number of measures have already been identified to achieve this. The Brussels Capital Region is aiming for a balanced budget by 2014, but will immediately be requesting additional funding from the federal government. Meanwhile, negotiators in the south have simply skirted the budget issue. One of the key objectives shared by all three governing agreements is to strive for a green economy. All the regions share ambitious plans for energy savings, the promotion of sustainable energy and public transport. The Flemish government is focusing on an investment policy with a new public Energy Company as a showpiece, while Wallonia expects more from regional government subsidies. The approach to unemployment has undergone a shift in attitude in the southern regions in particular, says De Tijd. As in Flanders, Wallonia and Brussels plan to implement tailor-made training programmes for the unemployed, with the first phase concentrating on the youth. As far as good management is concerned, francophone Belgium is finally following in the footsteps of Flanders. In order to wipe away the blemishes left by the PS scandals, French-speaking politicians are working on a ban on the combination of certain jobs, a strict code of ethics and, as in Flanders, smaller ministerial offices are promised in Brussels and Wallonia.

The very sobre policy declaration made by Minister-President Kris Peeters (CD&V) as his government took the oath in the Flemish Parliament was limited to an explanation of the governing agreement. He immediately tempered expectations by pointing out that, for the first time since its existence, the Flemish government will have to focus on cost-cutting measures. He also warned that unemployment was at its worst level since 1980 and that the Flemish economy was highly vulnerable at present. The large part of his speech was a summary of the measures contained in the governing declaration and the chief concerns of each party. In the case of his own party, the CD&V, it is the elimination of waiting lists in the healthcare sector. As far as the SP.A is concerned, it is poverty alleviation and further investments in education and a green economy. The N-VA meanwhile wants to focus on a more substantial integration policy and strengthening the Flemish character of the municipalities surrounding Brussels. State reform, Peeters believes, could provide all governments with better policy instruments to solve economic and budgetary problems. In consequence, "all governments share a common interest and responsibility", he concluded. Should the Francophones decide to shelve state reform, they will have to accept that Flanders will "make optimal use of its powers within the legal and constitutional framework". The opposition was unmoved by Peeters' policy declaration, labelling it soulless and unrealistic. "We need a long-term budget. I do not know what will serve as the foundation for these plans," said Open VLD parliamentary leader Sven Gatz. Groen! chairperson Mieke Vogels said that while she heard many pretty and expensive promises, she doubted they would get Flanders out of the crisis.

A task force from the Brussels Capital Region is to study how the division of powers between the region and the 19 Brussels municipalities can be redrawn before the next municipal elections. This is set to lead to new governing structures in the capital city. PS negotiator Philippe Moureaux has inferred that it is expected this will not lead to a merger of the Brussels municipalities, while Steven Vanackere (CD&V) referred to it as "mature negotiations" on a "positive division of tasks". The new government has further promised to address the catastrophic level of unemployment among the youth in the capital. Actiris, the Brussels labour service, will compel young people to participate in training programmes and will supervise them. As far as transport is concerned, the Brussels government is set on extending the north-southern section of the metro and on the progressive introduction of free public transport, provided that the federal government covers the costs. The vow of an extended bicycle network across Brussels has also been renewed. As is the case with the other promises made, everything will hinge on financial support from the federal government. Minister-President Charles Picqué (PS) feels the Brussels Region is fundamentally underfinanced, and attributes it to the fact that the region has to contend with a number of liabilities as a result of its national and international services and its capital status. The region's commitment to a balanced budget by 2014 will largely depend on successful negotiations with the federal authorities. In the mean time, a final decision on the division of ministerial portfolios for the Brussels government will not be reached before tomorrow evening, as the Ecolo and CdH party congresses are still to be held.