A recalculation of federal allocations has revealed that the Flemish government will receive 94 million Euros less than expected next year. This means that the 2011 budget for Flanders will once again have a deficit, and in order to balance the budget the authorities are considering abolishing the job tax discount in full. This would yield 75 to 80 million Euros, which would make up for most of the shortfall.
The job tax discount was introduced by the previous Flemish government made up of Christian-democrats, socialists and liberals, to give tax benefits to working people. But the amount was already cut dramatically last year as a result of cutbacks. In order to rein in the budgetary deficit, Flemish authorities decided to only award the discount to the 600,000 low-income Flemings as of 2010, with this amount not exceeding 125 Euros instead of the 300 Euros awarded in 2009. But this is now also set to be scrapped. No agreement has been reached on the full scrapping of the job tax discount. Minister-president Kris Peeters (CD&V) does not want to increase taxes, whereas abolishing the job tax discount also has advantages when compared to other measures. Flanders can also expect objections from Europe, as the tax discount only applies to those living and working in Flanders, and not to people such as commuters from France of the Netherlands. The European Commission has labelled the measure therefore as discriminatory and a violation of the free movement of labour force. It is threatening to go to the European Court of Justice to have the job tax discount scrapped. By abolishing it in full this would immediately quell the EC’s gripe. As the justification for it states, an alternative and more suitable measure can be adopted in order to keep the difference between unemployment benefits and wages large enough – one that will also encourage people to seek work.
The most obvious alternative to scrapping the job tax discount is to implement cuts in all departments using an across-the-board approach, whereby all budgets have to submit a certain amount. But Peeters says that heavy cuts have already been implemented in departments such as education and culture, and cutting back to the tune of another 94 million Euros will not be easy.
From Thursday evening the Flemish Environmental Agency (VMM) was already warning of possible floods in the region of some Flemish brooks and rivers, basing its warnings on the Flood Forecasting System. This instrument can predict flooding up to two days in advance, using special software to process information received from hydrologists, the height of the land, the capacity of the water channels and weather forecasts. On thursday the forecaster went fully into the red for the first time in its three-year existence.
After the last floods Flemish authorities decided to create natural flood areas and build water reservoirs, intended to cushion the majority of floods. So as to enable detailed forecasts for a reservoir, ten hydrologists working for the Flemish Environmental Agency continuously link the rain forecasts to the most recent data in terms of the reservoirs’ capacity. The profile of the watercourse, the dimensions of the banks and bridges, the presence of pumps, the depth of the valleys and the surface of meadows in the immediate vicinity are all taken into account. Forecasts from both the Royal Meteorological Institute and its UK counterpart enable forecasts from two hours to two days. “The system indicates where the situation is becoming critical,” said VMM spokesperson Mie Van de Kerckhoven. “Should there be a chance of local flooding, we immediately inform the local fire brigade.” In the wake of the dramatic Demer valley flood in 1997, all unnavigable water courses and Flemish reservoirs in the vicinity were charted and fell under the authority of the VMM. When it comes to navigable rivers the responsibility lies with the Hydrological Information Centre of the Flemish department of Mobility and Public Works. The two bodies exchange data and conclusions daily.
The VVM has already charted the data to the finest details when it comes to the best-known flooding areas along the Dender, IJzer, Demer, Dijle and Zenne rivers, while the other rivers will be mapped out by 2011. “Then we will be able to predict a possible flood at the level of individual houses,” says Van de Kerckhoven.