Flemish majority fears additional budgetary efforts

National Bank governor Luc Coene made two gloomy predictions in mid-August: firstly he maintained that the Belgian economy would sink into a recession for the first time since 2009 and secondly he said that Dexia Bank would have to resort to a capital increase in the short term if market conditions remained sluggish. At the time Flemish Minister-president Kris Peeters CD&V denounced the negative message by the governor and he suggested that Coene “had gone too far”. Liberal party leader in the Flemish Parliament, Sas Van Rouveroij, has  slammed since Peeters’ criticism as “exaggerated”, stating that “Coene was simply doing his job by informing the general public about the country’s financial situation”. He added that it worried him when politicians and members of government acted inappropriately because they failed to face reality. “In short, I completely disagree with Peeters,” Van Rouveroy said. Following criticism from members of Peeters’ own CD&V party, he will now have to defend his point of view and his swipe at Coene before the Flemish government’s Budgetary Commission on Tuesday. The Flemish majority approved the appeal made by Vlaams Belang for an additional commission on the subject without too many objections. “Peeters is entirely responsible for the opposition’s appeal,” says the president of the commission and fellow party member, Eric Van Rompuy, who suggested that he himself would rather have kept quiet and enjoyed his summer recess. Van Rompuy nevertheless plans to question him on Tuesday about the impact of a possible recession on the Flemish government’s budget and ascertain whether it is still on track and under control. “At the moment it looks as if his team has to generate an additional 80 million euros to balance the budget next year,” says Van Rompuy. Coaltion partner N-VA will put similar questions.