Flanders’ contribution to Wallonia remains stable
The transfer of funds between regions sees Flanders’ contribution to Wallonia holding steady at about €7 a year
First study released
When the salaries of civil servants are taken into account, the researchers see a downward trend in net contributions from Flanders, from €7.1 billion in 2014 to an estimated €6.6 billion in 2020.
The main sources of the transfers are taxation (€5 billion) and social security (€2 billion). Each household in Flanders pays an average €2,590 a year in taxes to cover the transfers. Brussels contribution is about €1,800 per family.
There are various reasons for the difference in the amount of the transfers. Flanders’ population is ageing faster than those of Wallonia and Brussels and receives more in pension payments. In Brussels, the evolution is in the opposite direction, with the population becoming proportionately younger.
In addition, the last round of state reforms in 2014 saw part of the revenue from income tax turned over to the regions, which also contributes to a reduction in transfers. Flanders, said Bourgeois (pictured), can do nothing about the size of the transfers, but the subject “could possibly be a theme at the next elections”.
“The temptation is also to imagine what we might be able to do with an extra €6.5 billion, in areas like welfare, mobility, research and development,” he said.
Photo courtesy N-VA
population of Belgium in millions of people, with 6.2 million living in Flanders.
number of state reforms that have resulted in the federal system as it is today.
number of years for which the federal House of Representatives and the Senate are elected.