Minister-President Diependaele: Fiscal autonomy must be the next step for Flanders

Flemish Minister-President Matthias Diependaele has declared that Flanders must achieve fiscal autonomy, arguing that politicians responsible for spending should also be accountable for revenue. He cited the Basque Country in Spain as an ideal model, where the region collects all taxes, income tax, corporate tax, VAT, and excise duties, to fund its own institutions and services. The Basque Country then transfers a fixed percentage to the central government based on its economic weight, covering national responsibilities like defense and state debt. "This, dear friends, is exactly the next step that Flanders must also be able to take: real fiscal autonomy," Diependaele stated in his July 11th speech. He expressed a desire to move away from what he described as Flanders' "lamentable federal financial situation," which he sees as a threat. While acknowledging his party colleague Bart De Wever's efforts to balance the federal budget, Diependaele conveyed little confidence in its long-term stability, stating it offers "no guarantee for future legislatures." He urged for a reversal of the logic behind the Special Financing Law, which governs financial flows in Belgium. "This means, above all, that we are restoring an age-old political law: politicians responsible for spending must also be responsible for income." Diependaele asserted that Flanders is willing to contribute to improving the country's financial situation but seeks the "homogeneous competencies and fiscal autonomy" that accompany such responsibility. He concluded, "Only in this way can we effectively help bear the financial burden that currently lies with the federal government."