Flemish budget negotiations at an impasse, September Declaration postponed
The big stumbling block between the parties that make up the Flemish coalition is child benefit. Agreement has been reached on a raft of other measures including the extension of the so-called “Job Bonus” that gives those on the lowest salaries extra take home pay. There is agreement too on support measures to help businesses through the energy crisis. However, differences on linking child benefit to inflation between the Christian democrats on the one hand and the nationalists and liberals on the other have yet to be resolved.
Last year the Flemish Government decided that, unlike other benefits, child benefit would by raised by 1% rather than 2% each time the trigger index is exceeded.
The Christian democrats want to reverse this measure, not least as the energy crisis is hitting families hard. The party also wants child benefit to be raised each time the trigger index is exceeded, rather than once a year as is currently the case.
The nationalists and liberals say that this would be too expensive. They are in favour of a more limited rise in the level of child benefit, preferring instead to offer greater support to porer families though benefits specifically aimed at them. As no agreement had yet been reached the talks broke up at 1:30pm. Read More...