Since the 26 May 2019 elections for a new Belgian federal government, intensive negotiations and several possible coalitions have been explored.1 In the end, the Vivaldi coalition2 succeeded in forming a new Belgian federal government on 30 September 2020.3This contribution examines how much music the coalition agreement4 of the Vivaldi coalition actually possesses when it comes to the effects for Belgium’s border regions. Although not all the details are currently known, it is already certain that Belgium faces several reforms in the coming years.
This contribution includes policy initiatives – commented on by the author of this contribution – that could have cross-border implications. Specifically, this contribution focuses on policy initiatives related to cross-border healthcare and social, tax and climate policy.5
Cross-border analysis
Attention to border regions
| The federal government has confirmed in the coalition agreement that Belgium continues to maintain a pro-European stance. As well as being the host country for many European institutions, Belgium has much to gain from a strong and united Europe, according to the federal government. At the same time – also given the Belgian presidency of the Council of the European Union in 2024 – the aim is to further expand both European and international cooperation. |
| Comment The coalition agreement devotes a lot of attention to foreign policy. In contrast, the coalition agreement pays little attention to border regions. For instance, no mention is made of the way in which (future) policy or future laws and regulations will be tested for potential border effects.6 If insufficient account is taken of the potential border effects of new policy or legislation, this may lead to discrepancies that ultimately hinder border regions. |
Cross-border healthcare
Examination of the coalition agreement quickly reveals that it was drafted at the time of the corona era. Recent months have shown that the corona crisis is having a major impact on the healthcare sector, in addition to economic consequences.7 In light of these developments, the federal government is proposing several policies.
| From a European perspective, the federal government states that Belgium will follow the criteria of the European Centre for Disease Prevention and Control (ECDC) when reporting positive coronal tests. In addition, the colour code recommended by the European Commission for other European member states will be followed and measures and developments in Belgium’s neighbouring countries will be taken into account. Another objective is to reach a joint procurement policy for essential medicines and medical devices together with the European Commission. Indeed, the federal government is committed to affordable medicines. In order to achieve this objective, joint price negotiations are being intensified at the level of the BENELUXA initiative or at European level. |
| Comment The corona crisis showed that European member states often make different trade-offs and decisions that, in addition, are not aligned. To illustrate, as many countries closed their land borders even to border residents for non-essential travel, this led to disruption of the Schengen area. A European-coordinated approach can therefore not only save costs, but also ensure greater legal certainty and equal treatment for residents and businesses in border regions. |
Europolsocial
| In the area of social security and pensions8, the differences between the statuses of employees, the self-employed and civil servants will be reduced while respecting already acquired rights. The federal government will formulate a proposal for this by the end of 2021. It will also contribute to the development of the European Labour Authority (ELA) and aims to create a “social Europol”. According to the coalition agreement, this social Europol should monitor the posting of workers at European level. |
| Comment For border regions, these are welcome developments. As various studies by the ITEM Expertise Centre have shown, cross-border workers – including posted workers – often encounter obstacles, including in the field of social security. For instance, it is not always obvious in which country a (posted) cross-border worker is socially insured. Better monitoring and control from a European perspective is therefore to be welcomed. |
Digi-tax for internet companies
| Besides the above, a reform of the tax system is also being prepared by the federal government. The federal government plans to introduce a so-called digi-tax for internet companies. The preferred option is for this to be introduced at European or international level. However, should this fail, Belgium will independently introduce this new tax in 2023 and this digi-tax will become a national tax. |
| Comment It should be noted first of all that European member states have fiscal sovereignty.9 Introducing a common European tax is therefore not obvious. However, if Belgium decides to introduce this tax independently, the possible impact on Belgium’s competitive position vis-à-vis the other European member states should be taken into account. |
Cross-border rail network
| On climate policy, the federal government is committed to the agreements contained in the Paris Climate Agreement and the European Commission’s Green Deal. To reduce greenhouse gas emissions to 55% by 2030, the federal government is taking several measures. One measure is to allow only new electric (company) cars from 2026 onwards. At the same time, investments are being made in the rail network, including improving cross-border connections. |
| Comment In order to achieve climate targets, the necessary changes will be made in the coming years. For example, Wallonia has already announced its intention to introduce a low-emission zone (zone de basses émissions; ZBE for short) for the entire region by 1 January 2023. If fewer people are allowed to drive their cars into Belgium, cross-border mobility by road will be hampered. This could lead to economic consequences. In contrast, improving cross-border connectivity of the rail network benefits cross-border mobility and can help achieve climate goals. |
Work for the conductor
The new federal government faces several challenges and reforms. Both the social security and pension system and the tax system will undergo major overhauls in the coming years. Climate purposes will also bring changes. In addition to these reforms, Belgium also faces institutional reforms, which should be completed by 2024.
In short, with the formation of the new federal government and the drafting of their policies, the first step has therefore been taken for a prosperous, inclusive and sustainable Belgium. With the repertoire known and the musical instruments tuned, the next few years will have to show whether the Vivaldi coalition will be as successful as their namesake.
NB The title of this contribution contains a reference to the coalition agreement (“the agreement”) reached between the seven parties of the Vivaldi coalition (“Le Quattro Stagioni”; or The Four Seasons by composer Antonio Vivaldi) through which the Belgian federal government (“Brabançonne”; the Belgian national anthem) was formed.
Footnotes
1: In addition to the elections for the federal government , elections to the for the European Parliament and regional elections (including for the Flemish Parliament) took place.
2: This name was chosen because it makes a reference to composer Vivaldi of ‘The Four Seasons’ where each season stands for a colour from the coalition. The blue of the Liberals is winter, the green of the Ecologists is spring, the red of the Socialists is summer and the orange of the Christian Democrats is the colour of autumn.
3: The federal government is formed by seven political parties – Christian Democrats, Greens, Liberals and Socialists (Vivaldi coalition) – and took the oath of office at the Royal Palace of Brussels on 1 October 2020. Liberal Alexander De Croo (Open VLD) has been appointed prime minister of Belgium. For an overview of the other members of the federal government, see https://www.federale-regering.be/nl.
4: A. De Croo & P. Magnette, For a prosperous, inclusive and sustainable Belgium, Brussels 30 September 2020; see also https://www.belgium.be/sites/default/files/Regeerakkoord_2020.pdf.
5: National policy initiatives are therefore not considered in this contribution.
6: For some time now, the Dutch House of Representatives has been using the Guideline on Border Effects when developing new policies or new laws and regulations. The Leidraad Grenseffecten was created partly thanks to ITEM. See also https://www.kcwj.nl/sites/default/files/leidraad_grenseffecten_definitief.pdf.
7: ITEM monitors current impact of corona on border regions. Go to our Cross-border portal if you want to stay informed.
8: For a more detailed analysis of the federal government’s social policy, see S.H.W.A. Bemelmans, ‘Work in progress: Belgian social policy on the rocks’, ITEM Blogs 27 November 2020.
9: Article 5 Treaty on European Union in conjunction with Article 114 Treaty on the Functioning of the European Union.