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Christian-democrats, socialists and nationalists form new Flemish government

The government accord, which was agreed upon last night, includes significant budget cuts but will make the most of Flemish powers · Minister-President Kris Peeters will head the cabinet again · Walloon parties warn that government agreement infringes Federal powers on welfare matters.

Flanders has a new coalition government one month after parliamentary elections. The new executive will be formed by Christian-democrats (Christen-Democratisch en Vlaams, CD&V), Socialists (Socialistische Partij - Anders, SP.A) and pro-independence New Flemish Alliance (Nieuw-Vlaamse Alliantie, N-VA). The government agreement programme, entitled "A vigorous Flanders in crucial times: for an innovative, lasting and enthusiastic society" aims at cutting public expenditure so that the budget is balanced by 2011. The accord must now be approved by party conventions on Friday so that the new cabinet can start working on Monday.

Apart from boosting Flanders power, parties have undertaken to create benefits for families, children and handicapped people as well as hospitalization insurances from 2011 on. The plan has met with the reaction of Walloon government parties, which argue that the measures are a threat to Belgian common welfare system. The three coalition parties in Walloon have said under the Flemish agreement children from the South of Belgium are discriminated against those from the North, and have regretted Flemish parties' "lack of solidarity": "Flanders has today financial resources to administer, but some situations may be reversible", warned socialist Elio di Rupo. He further added that he expects "difficult times with N-VA in government".

The fact that N-VA has consented to form a coalition with CD&V is worth mentioning, since the pro-independence party withdrew its support to Christian-Democrats last September, both in Flemish and Federal governments. N-VA left government after "having lost confidence in current leaders who are unable to find a solution to the political crisis Belgium is undergoing regarding devolution of powers to regions and reforming the structure of the State".

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