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Deal on Belgian state reform gives greater tax autonomy to regions

The enlargement of financial powers for Flanders, Wallonia and Brussels amounts to 10.7 billion euros · Regions get a part of traffic policy and child benefits go to communities · Regional governments will be allowed to organize popular consultations

The deal that eight Belgian (four Flemish, four Francophone, and without the agreement of the main party in Flanders, the New Flemish Alliance) political parties concluded last week (after more than a year of negotiations) is going to change Belgium's political face. This is the sixth state reform that Belgium undergoes since 1970, a process that has signaled the transition from a unitary state to a federal one. These are the main aspects that are going to change from now onwards:

Greater tax autonomy. Regions will get more financial powers. According to De Redactie, the enlargement of tax autonomy for Flanders, Wallonia and Brussels amounts to 10.7 billion euros. It is foreseen that a mechanism on interregional solidarity will be put on place, lasting for the next ten years. All in all, the regional tax autonomy will be inscribed in the Constitution.

Mixed district of Brussels-Halle-Vilvoorde is split. Residents of Halle and Vilvoorde areas (Flemish side of the border) will no longer be able to vote for Francophone parties. This was one of the main demands of Flemish parties. But still, residents in six municipalities next to Brussels region will preserve their right to vote for Francophone parties.

Regions get a part of traffic policy. Motorways and road signs will continue to be a federal matter, but speed limits in regional roads and training in order to get a driving license will be decided at the regional level.

Child benefits go to communities. The three community governments will decide on child benefits. Those payments were currently decided at the federal level.

Popular consultations in regions. According to Ecolo (one of the eight parties of the deal), it has also been agreed that regions will be able to organize popular consultations, but only on regional issues. This power will also be inscribed in the Belgian Constitution.

(With information from RTBF ,De Redactie and La Libre Belgique.)