• AGREEMENT ON THE REFORM OF THE STATE: FEDERAL COMPETENCES SHIFTED TOWARDS THE REGIONS

AGREEMENT ON THE REFORM OF THE STATE: FEDERAL COMPETENCES SHIFTED TOWARDS THE REGIONS

10 July 2013

On 9 July 2013, the government negotiators reached a principal agreement on the 6th and biggest reform of the state in Belgium's history. The aim is to grant more autonomy to the regions.

From 1 January 2014 some of the federal competences will be shifted towards the regions (Flanders, Wallonia and Brussels). It concerns in particular:

  • Child support
  • Parts of the labour market policy
  • Geriatric care and care for the disabled
  • Housing bonus
  • The policy on service vouchers

A regional personal income tax will be adopted by means of a surcharge on the federal personal income tax. There will be no fiscal autonomy on corporate income tax level.

In addition, state grants will be assigned on the basis of the taxbearing capacity of or the taxes levied by the regions. An increase of the tax revenue therefore entails an increase of the state grants.