A strategic text
In addition to this sequence taken from the “Arizonian” scenes, there remain broader substantive divergences. Even larger than we could have thought while the discussions have been bogged down for six months. Explanations. Over the past two weeks, federal negotiators have gone over in detail their budgetary projects and the three main chapters of Bart De Wever's socio-economic “super-note” (employment, taxation, pension). As a reminder, this “super-note” is a highly debated text which constitutes the heart of the future majority pact. The basic text has existed since August and has been adapted several times based on comments from the four partners of the N-VA (MR, Engagés, CD&V, Vooruit).
Federal negotiations: We are still far from the final “Arizona” agreement…
On Tuesday, the trainer invited his interlocutors to submit their possible comments on the latest version of the socio-economic and budgetary outline, while specifying that the proposals on the table were not intended to be reviewed in depth: “Two or three amendments are fine; around ten, that will be a problem“, warned Bart De Wever. But, as of Wednesday, to the amazement of several negotiators, it appeared that Vooruit had tabled… 500 amendments. And the CD&V, several dozen. “The left parties are still very far from accepting a final agreement, this super-note is only a basis for them“, complains an informant.
gullThe left parties are still very far from accepting a final agreement, this super-note is only a basis for them.”
It is impossible to review the numerous grievances formulated by Conner Rousseau, president of the Flemish socialists. However, two of them stand out because they call into question, in the eyes of certain “Arizonians”, the balance of the coalition.
The initial balance called into question
First of all, Vooruit proposes another distribution of the budgetary effort. Initially – and this was accepted by all the negotiators – the framework for cleaning up public finances was based on the following key: 2/3 of the effort must come from structural reforms in strategic areas such as pensions and the employment market. employment; 1/3 of the effort must come from “discretionary measures“. These measures are themselves subdivided into savings for 2/3 at least, and into various revenues and taxes on the “broader shoulders” for 1/3 at most.
Conner Rousseau now wants to change this subtle distribution. In the socialist amendments, the expression “to the maximum” for the tax on “the broadest shoulders” jumped, leaving the door open, during the legislature, to a harsher tax pressure than expected with regard to wealthier taxpayers. Likewise, the terms “various recipes” have also disappeared, which automatically places the taxation of the broadest shoulders – a political trophy demanded by Vooruit – as the only possible “discretionary measure” in terms of revenue and inflates it all the more. In this kind of document, hell is always in the details….
Conner Rousseau inherits the “Black Jack”, Bart De Wever is under pressure, but remains in the running for “16”
Tax dividends (even) more
Another example, also in tax matters. Conner Rousseau wants to increase the withholding tax in certain situations. Vooruit wants to change the so-called “VVPR” mechanism (Verlaagde Voorheffing/Reduced Withholding Tax) which allows companies to distribute their after-tax profits at an advantageous tax rate. These diets will be adapted in order tothat the tax burden on a distribution of dividends is at least 20%“, specifies the amendment proposed by the Flemish socialists. The latter also wish to toughen taxation following a repurchase of own shares by a company.
By tabling around 500 amendments, Vooruit caused some discouragement around the table. “Basically, Conner Rousseau calls everything into question“, worries a source. While Bart De Wever hoped to go to his audience at the Palace on Tuesday January 7, with a government agreement under his arm, everything seems to be faltering again. According to a keen observer, the advent of the “Arizona” government could be postponed… until Easter.
Forward se defend
Contacted this Thursday, Conner Rousseau's spokesperson wants to justify the zeal of his party: “Our voters expect us to ensure that the government distributes the effort fairly and that the wealthy or people with a lot of money contribute equally. We will continue to fight for this. If we constantly hear that Vooruit wants to increase taxes, the opposite is true: the ordinary Belgian pays too much tax, the rich escape it. It's just unfair.”
