Federations react to new government’s plans
The five-year plan of the new government of Flanders gets 17/20 from employers, and farmers are happy, but home buyers could lose out
Mixed response
The farmers’ union Boerenbond also responded enthusiastically to the document. “We are pleased that the government agreement emphasises the role played by our Flemish agriculture and garden sector and incorporates this into several policy areas,” said chair Piet Vanthemsche.
However, many Flemish people planning to take out mortgages are likely to feel the pinch next year due to a reduction in mortgage tax relief (the woonbonus), which applies to mortgages signed after 1 January 2015. The average family is likely to lose €1,300 a year due to the change, tax expert Jef Wellens told De Standaard.
The Flemish construction industry has criticised the new rules as they are likely to lead to a long-term fall in house construction. “It’s bad news for us as building firms are already finding it hard to fill their order books,” said Marc Dillen of the Flemish Construction Confederation.
The changes to tax relief are also likely to have an impact on house prices, according to Iain Cook of estate agents ERA. He has predicted that house prices will drop by about 5% due to the added financial burden on buyers.
The new government also plans to make profound changes to child benefit in Flanders by paying a standard rate per child, rather than paying a higher rate for each additional child. The Flemish family association Gezinsbond says large families with more than three children are likely to suffer as a result of the proposed changes.
The five-year plan was launched this week by Geert Bourgeois of the Flemish nationalists N-VA, Kris Peeters of the Christian-democrats CD&V and Gwendolyn Rutten of liberals Open VLD. The aim is to achieve a balanced budget without tax increases, but people in Flanders will still have to make sacrifices.
