"No money for expensive measures"

8th January 2008, Comments 0 comments

Verhofstadt has warned the government coalition partner that there is little money for expensive measures.

8 January 2008 - Prime Minister Guy Verhofstadt (Flemish liberal) has warned the government coalition partner that there is little money for expensive measures. "The margin for a reduction of the tax burden and to underpin purchasing power is very limited."

This was the message PM Guy Verhofstadt had at the start of his emergency government.

It is bad news for the liberals who had been calling for a reduction of the tax burden. It is also bad news for the Flemish Christian Democrats, who had promised an expensive social agenda during their election campaign.

In the dailies Het Laatste Nieuws and De Morgen, PM Verhofstadt said that he had drafted a personal memo regarding the state reforms. Talks on the state reforms are due to start on Wednesday, but Yves Leterme (Flemish Christian Democrat and PM from April) has postponed the first meeting.

The main tasks of the Verhofstadt III government is to draft a budget for 2008 and to consolidate a good working team of 13 ministers.

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