Brussels (The Brussels Morning Newspaper): Coalition negotiations have come to a halt in Belgium as the parties fight over issues including budget cuts and tax proposals which include a controversial 10% tax on share profits proposed by De Wever. According to Sinardet this poses significant problems in light of the fact that the country needs to present a budget plan by September 20 to deal with an amount of €28 billion deficit.
The election results didnt make it clear who would work together in the government. Things got more confusing when De Wever suggested a tax on profits from shares. Talks are stuck and no progress is being made. People were feeling positive because the scary things they expected on June 9 didn’t happen. Its not a surprise that things are challenging now. This insight comes from Dave Sinardet a political science professor at VUB.
Can Belgium’s N-VA, CD&V, Vooruit, MR and Les Engagés work together on budget cuts?
The group consisting of N-VA, CD&V, Vooruit, MR and Les Engagés seems like the most likely team to form a coalition. They have to find a way to agree on many different political ideas. This task is even more challenging because they have to deal with tough situations including having to make significant budget cuts. This information was shared by Sinardet.
By September 20 Belgium must send a budget plan to the European Commission. In order toreduce its high deficit and public debt it needs to cut €28 billion from its budget. This amount €14 billion will come from changing practices while the other €14 billion will either be achieved through increased taxes or decreased expenditure. In his significant economic proposal De Wever recommended a 10% levy on profits arising from stocks and bonds. According to the Flemish socialist party called Vooruit such tax is necessary. This suggestion meets serious opposition by the Francophone liberal party MR.
