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Biographies	
  
Steven	
  Lauwers	
  is	
  a	
  Belgian	
  (Flemish)	
  national	
  currently	
  pursuing	
  a	
  Master	
  of	
  Public	
  Policy	
  at	
  
the	
   Hertie	
   School	
   of	
   Governance.	
   After	
   having	
   received	
   his	
   degrees	
   in	
   Corporate	
  
Communications	
   and	
   International	
   Communication	
   from	
   Plantijn	
   Universtiy	
   College	
   in	
  
Antwerp,	
   he	
   worked	
   with	
   the	
   World	
   Health	
   Organization	
   (WHO)	
   in	
   Geneva	
   for	
   nearly	
   3	
   years,	
  
representing	
  WHO	
  as	
  a	
  spokesperson	
  during	
  the	
  H1N1	
  Influenza	
  outbreak.	
  
	
  
Godefroy	
  Grosjean	
  is	
  a	
  Belgian	
  (Walloon)	
  national	
  studying	
  public	
  policy	
  at	
  the	
  Hertie	
  School	
  
of	
   Governance.	
   He	
   is	
   currently	
   doing	
   a	
   professional	
   year	
   with	
   the	
   German	
   International	
  
Cooperation	
  (GIZ)	
  in	
  China.	
  Godefroy	
  holds	
  a	
  M.Sc.	
  in	
  Economics	
  from	
  Maastricht	
  University.	
  
He	
   focuses	
   on	
   environmental	
   policy	
   with	
   a	
   particular	
   interest	
   for	
   sustainable	
   urban	
  
development.	
  
	
  
BELGIUM’S	
  IDENTITY	
  CRISIS	
  
	
  
            On	
   the	
   15th	
   of	
   February	
   2011,	
   after	
   250	
   days	
   without	
   a	
   government,	
   Belgium	
   snatched	
  
the	
  world	
  record	
  for	
  the	
  longest	
  period	
  without	
  a	
  government	
  from	
  Iraq.	
  A	
  debatable	
  trophy,	
  
but	
   nonetheless	
   the	
   country	
   seemed	
   finally	
   to	
   have	
   found	
   something	
   they	
   can	
   all	
   celebrate	
  
together:	
   in	
   Antwerp	
   DJs	
   were	
   on	
   hand,	
   Liege	
   staged	
   a	
   flash-­‐mob,	
   Louvain	
   handed	
   out	
   free	
  
chips	
  and	
  Ghent	
  featured	
  250	
  protesters	
  who	
  'dressed	
  down	
  to	
  the	
  bare	
  essentials’.	
  How	
  did	
  
we	
  get	
  there	
  and,	
  more	
  importantly,	
  where	
  do	
  we	
  go	
  from	
  here?	
  
	
  
            Looking	
  back	
  in	
  history,	
  Belgium	
  could	
  be	
  seen	
  as	
  an	
  “accidental”	
  nation.	
  In	
  1815,	
  at	
  
the	
   end	
   of	
   the	
   Napoleonic	
   Wars,	
   the	
   Congress	
   of	
   Vienna	
   gave	
   the	
   “Southern	
   Netherlands”	
  
(previously	
   and	
   successively	
   under	
   Spanish,	
   Austrian	
   and	
   French	
   rule)	
   to	
   the	
   Kingdom	
   of	
  
Netherlands.	
   That	
   region	
   was,	
   contrary	
   to	
   the	
   Northern	
   provinces,	
   homogeneously	
   Roman	
  
Catholic.	
  During	
  the	
  Dutch	
  rule,	
  the	
  Southern	
  provinces	
  were	
  underrepresented	
  politically	
  and	
  
exploited	
   financially,	
   compared	
   to	
   the	
   Northern	
   Provinces	
   (today’s	
   Netherlands).	
   This	
  
situation	
   created	
   tensions	
   and	
   eventually	
   led	
   to	
   the	
   Belgian	
   revolution.	
   The	
   big	
   powers	
   in	
  
Europe,	
  afraid	
  of	
  potential	
  instability	
  in	
  the	
  region,	
  recognized	
  the	
  new	
  country	
  rather	
  quickly.	
  	
  
	
  
            At	
   a	
   period	
   of	
   nation	
   building	
   in	
   Europe,	
   Belgium	
   declared	
   French	
   as	
   its	
   only	
   official	
  
language.	
   The	
   Belgian	
   elites	
   were	
   willing	
   to	
   dissociate	
   themselves	
   from	
   the	
   previous	
   Dutch	
  
rule:	
   the	
   ruling	
   class	
   turned	
   to	
   French	
   (all	
   over	
   Belgium,	
   including	
   Flanders),	
   while	
   the	
   masses	
  
spoke	
  Flemish	
  in	
  the	
  North	
  and	
  Walloon	
  in	
  the	
  South.	
  The	
  arrogance	
  of	
  the	
  French-­‐speaking	
  



	
                                                                                                                                                        1	
  
Belgian	
   elite	
   during	
   the	
   industrialization	
   and	
   the	
   poor	
   living	
   conditions	
   of	
   the	
   working	
   class	
  
caused	
  a	
  lot	
  of	
  resentment.	
  During	
  the	
  20th	
  century,	
  French	
  was	
  slowly	
  replaced	
  by	
  Dutch	
  in	
  
Flanders,	
   while	
   in	
   Wallonia	
   French	
   became	
   the	
   main	
   language	
   –	
   a	
   natural	
   development	
   as	
  
Walloon	
  was	
  a	
  Latin	
  dialect	
  much	
  closer	
  to	
  French.	
  During	
  that	
  process,	
  a	
  lot	
  of	
  the	
  frustration	
  
existing	
   in	
   Flanders	
   against	
   the	
   previously	
   French-­‐speaking	
   bourgeoisie	
   shifted	
   towards	
   the	
  
French-­‐speaking	
  part	
  of	
  Belgium.	
  
           	
  
           In	
   the	
   late	
   1960s	
   the	
   economic	
   lead	
   was	
   transferred	
   from	
   the	
   South	
   to	
   the	
   North..	
  
Wallonia,	
   long	
   among	
   the	
   most	
   prosperous	
   and	
   technologically	
   advanced	
   regions	
   of	
   Europe	
  
due	
  to	
  its	
  heavy	
  industries	
  (coal	
  and	
  steel-­‐based),	
  entered	
  a	
  period	
  of	
  decline,	
  similar	
  to	
  other	
  
regions	
   with	
   comparable	
   economic	
   structures.	
   Flanders	
   benefited	
   at	
   the	
   same	
   time	
   from	
   a	
  
rapid	
   development	
   of	
   its	
   trade-­‐oriented	
   SMEs	
   and	
   light	
   industries,	
   supported	
   by	
   the	
   fast	
  
growth	
  of	
  the	
  Antwerp	
  harbour.	
  Due	
  to	
  the	
  lack	
  of	
  economic	
  vision	
  of	
  Wallonia’s	
  politicians,	
  
the	
  southern	
  part	
  of	
  Belgium	
  was	
  not	
  able	
  to	
  recover	
  completely	
  –	
  despite	
  significant	
  social	
  
security	
   transfers	
   from	
   the	
   North	
   to	
   the	
   South	
   –	
   and	
   Flemish	
   people	
   became	
   increasingly	
  
reluctant	
  to	
  subsidise	
  and	
  support	
  the	
  economically	
  depressed	
  Walloons.	
  	
  
           	
  
           A	
  major	
  turning	
  point	
  in	
  the	
  political	
  history	
  of	
  Belgium	
  was	
  the	
  constitutional	
  reform	
  
of	
  1970.	
  The	
  country	
  was	
  divided	
  into	
  language	
  communities,	
  not	
  only	
  increasing	
  the	
  division	
  
of	
   the	
   country	
   on	
   the	
   basis	
   of	
   language,	
   but	
   also	
   restructuring	
   its	
   politics:	
   Belgium’s	
  
conservative	
  Catholic	
  party	
  split	
  into	
  Francophone	
  and	
  Flemish	
  halves,	
  followed	
  by	
  the	
  liberals	
  
and	
   the	
   socialists.	
   Belgian	
   politics	
   became	
   tribal,	
   with	
   each	
   party	
   championing	
   its	
   own	
  
linguistic	
  agenda.	
  Belgium	
  now	
  consists	
  of	
  federated	
  entities	
  –	
  language	
  based	
  “communities”	
  
–	
  and	
  the	
  three	
  regions,	
  Flanders,	
  Wallonia,	
  and	
  Brussels.	
  Competences	
  are	
  shared	
  between	
  
these	
  three	
  levels	
  of	
  government	
  while	
  matters	
  like	
  social	
  security,	
  justice	
  and	
  foreign	
  affairs	
  
remain	
  a	
  federal	
  responsibility.	
  	
  
           	
  	
  
           The	
  complicated	
  structure	
  of	
  the	
  Belgian	
  state,	
  and	
  a	
  history	
  of	
  unsuccessful	
  requests	
  
from	
  Flanders	
  for	
  state	
  reform,	
  has	
  led	
  to	
  growing	
  political	
  tensions	
  over	
  the	
  last	
  years	
  in	
  the	
  
country.	
  At	
  the	
  most	
  recent	
  election,	
  about	
  8	
  months	
  ago,	
  many	
  Flemish	
  voters	
  sought	
  refuge	
  
in	
  the	
  one	
  party	
  that	
  had	
  been	
  criticising	
  the	
  political	
  mess	
  all	
  along:	
  the	
  New	
  Flemish	
  Alliance	
  
(NVA).	
  This	
  nationalist	
  party,	
  which	
  only	
  held	
  a	
  few	
  seats	
  in	
  the	
  Senate	
  and	
  the	
  Chamber	
  of	
  


	
                                                                                                                                                  2	
  
Representatives	
  before	
  2010,	
  won	
  the	
  elections	
  in	
  Flanders	
  with	
  nearly	
  30%	
  of	
  the	
  votes.	
  In	
  
Wallonia,	
   almost	
   40%	
   of	
   the	
   voters	
   put	
   their	
   hopes	
   in	
   the	
   Socialist	
   Party	
   (PS).	
   Both	
   party	
  
presidents	
   embody	
   what	
   the	
   different	
   linguistic	
   communities	
   feel	
   the	
   other	
   one	
   stands	
   for:	
  
Bart	
  De	
  Wever	
  (NVA)	
  sees	
  separatism	
  as	
  the	
  solution	
  to	
  the	
  current	
  chaos	
  and	
  represents	
  a	
  
Flemish	
  part	
  that	
  is	
  clearly	
  in	
  search	
  of	
  its	
  identity,	
  whereas	
  Elio	
  Di	
  Rupo	
  (PS)	
  represents	
  the	
  
kind	
  of	
  socialism	
  the	
  Flemish	
  voters	
  dislike,	
  the	
  long-­‐term	
  social	
  security	
  and	
  support,	
  which	
  
they	
  perceive	
  as	
  the	
  opposite	
  of	
  change	
  and	
  progress.	
  	
  
           	
  
           Belgium’s	
  unwieldy	
  political	
  system	
  makes	
  coalition	
  governments	
  inevitable	
  and	
  with	
  
Flemish	
  politicians	
  squabbling	
  with	
  Walloons,	
  and	
  just	
  as	
  fiercely	
  among	
  themselves,	
  political	
  
paralysis	
   ensued.	
   In	
   the	
   ensuing	
   coalition	
   negotiations,	
   the	
   parties	
   have	
   chosen	
   to	
   get	
   a	
  
federal	
   reform	
   agreed	
   first	
   before	
   building	
   a	
   government.	
   This	
   complex	
   bargaining	
   process	
  
between	
  Belgium’s	
  seven	
  largest	
  parties	
  is	
  still	
  ongoing	
  –	
  increasingly	
  paralysing	
  the	
  country.	
  
	
  
           Putting	
  history	
  aside	
  for	
  a	
  bit,	
  what	
  hinders	
  Belgium	
  to	
  find	
  a	
  sustainable	
  solution	
  and	
  
what	
  are	
  our	
  recommendations?	
  Parties	
  like	
  the	
  NVA	
  have	
  often	
  highlighted	
  the	
  long-­‐lasting	
  
social	
   transfer	
   from	
   Flanders	
   to	
   Wallonia	
   as	
   a	
   reason	
   for	
   the	
   independence	
   of	
   the	
   Northern	
  
region.	
  We	
  should,	
  indeed,	
  fine-­‐tune	
  our	
  welfare	
  system.	
  But,	
  while	
  infinite	
  transfers	
  are	
  not	
  a	
  
solution,	
  solidarity	
  is	
  part	
  of	
  the	
  European	
  model	
  we	
  have	
  to	
  defend.	
  Confidence	
  in	
  cultural	
  
exchange	
   and	
   mutual	
   enrichment,	
   as	
   well	
   as	
   economic	
   innovation,	
   is	
   key	
   for	
   long-­‐term	
  
growth.	
  The	
  nationalism	
  put	
  forward	
  by	
  the	
  NVA	
  is	
  at	
  the	
  antipode	
  of	
  such	
  approach.	
  
           	
  
           Language	
  issues	
  have	
  played	
  another	
  major	
  role	
  in	
  the	
  Belgian	
  disunion.	
  The	
  Flemish	
  
were	
  relatively	
  more	
  successful	
  than	
  the	
  French-­‐speaking	
  at	
  mastering	
  both	
  main	
  languages	
  
of	
  the	
  country.	
  However,	
  the	
  young	
  Belgian	
  generations	
  are	
  evolving	
  with	
  different	
  horizons	
  
than	
  four	
  decades	
  ago.	
  They	
  want	
  to	
  discover	
  Europe	
  and	
  the	
  rest	
  of	
  the	
  world,	
  which	
  may	
  be	
  
observed	
  in	
  the	
  popularity	
  of	
  the	
  Erasmus	
  exchange	
  program,	
  and	
  are	
  eager	
  to	
  learn	
  English,	
  
Chinese,	
  Spanish	
  or	
  even	
  German	
  to	
  communicate	
  with	
  the	
  rest	
  of	
  the	
  world.	
  But	
  becoming	
  
increasingly	
   cosmopolitan,	
   our	
   generation	
   should	
   realise	
   this	
   language	
   “fundamentalism”	
   is	
  
outdated	
  in	
  today’s	
  society.	
  After	
  all,	
  what	
  is	
  more	
  essential,	
  the	
  communication	
  itself	
  or	
  the	
  
means	
  used	
  to	
  exchange?	
  
           	
  


	
                                                                                                                                                    3	
  
The	
  EU	
  is	
  pressuring	
  Belgians	
  to	
  calm	
  down	
  and	
  act	
  sensibly,	
  but	
  tribal	
  linguistic	
  and	
  
cultural	
  passions	
  often	
  pre-­‐empt	
  rational	
  behaviour.	
  Belgium	
  is	
  facing	
  its	
  worst	
  troubles	
  just	
  
as	
  the	
  EU	
  confronts	
  the	
  gravest	
  challenge	
  to	
  the	
  Euro.	
  Belgium	
  should	
  realise	
  that,	
  as	
  one	
  of	
  
the	
  founding	
  members	
  of	
  the	
  EU	
  and	
  host	
  to	
  its	
  political	
  centre,	
  it	
  must	
  remain	
  a	
  small-­‐scale	
  
example	
   for	
   European	
   integration.	
   European	
   unification	
   is	
   based	
   on	
   looking	
   beyond	
   the	
  
nation-­‐state;	
   Belgium	
   cannot	
   dissect	
   itself	
   without	
   setting	
   a	
   worrisome	
   precedent:	
   not	
   only	
  
Spain	
  and	
  Italy	
  would	
  fret	
  about	
  the	
  precedent	
  of	
  rich	
  regions	
  pulling	
  away	
  from	
  poorer	
  ones;	
  
Scottish	
   nationalists	
   speak	
   of	
   independence	
   within	
   Europe	
   and	
   many	
   ex-­‐communist	
   countries	
  
have	
   significant	
   national	
   minorities:	
   think	
   of	
   Hungarians	
   in	
   Slovakia.	
   Splitting	
   Belgium	
   would	
  
break	
  the	
  mystique	
  of	
  European	
  integration.	
  	
  
            	
  
            So	
  far	
  the	
  Belgian	
  citizens	
  have	
  demonstrated	
  a	
  certain	
  lassitude	
  towards	
  the	
  current	
  
events.	
  But	
  now,	
  250	
  days	
  after	
  the	
  elections,	
  Belgium	
  is	
  probably	
  one	
  of	
  the	
  only	
  countries	
  in	
  
the	
  world	
  that	
  is	
  organising	
  protests	
  in	
  favour	
  of	
  a	
  government,	
  rather	
  than	
  against	
  it.	
  While	
  
the	
   global	
   political	
   framework	
   is	
   evolving	
   dramatically,	
   Belgium	
   wastes	
   time	
   debating	
   only	
  
minor	
   issues.	
   Public	
   debt	
   is	
   now	
   at	
   around	
   100%	
   of	
   GDP	
   and	
   the	
   spread	
   of	
   Belgian	
   10-­‐year	
  
bonds	
   over	
   the	
   German	
   benchmark	
   is	
   three	
   times	
   as	
   high	
   as	
   at	
   the	
   beginning	
   of	
   2010.	
   Not	
  
finding	
  a	
  solution	
  will	
  result	
  in	
  a	
  rising	
  debt	
  ratio	
  and	
  complete	
  chaos.	
  	
  
            	
  
            It	
   is	
   obvious	
   we	
   cannot	
   stay	
   where	
   we	
   are,	
   with	
   so	
   much	
   political	
   capital	
   invested,	
   but	
  
where	
  exactly	
  do	
  we	
  go	
  from	
  here?	
  One	
  of	
  the	
  solutions	
  being	
  discussed	
  by	
  Belgium’s	
  political	
  
parties	
   –	
   and	
   the	
   solution	
   favoured	
   by	
   the	
   authors	
   –	
   consists	
   of	
   a	
   partial	
   transfer	
   of	
  
competences	
  and	
  tax	
  revenues	
  from	
  the	
  federal	
  state	
  to	
  the	
  regions.	
  The	
  seven	
  parties	
  have	
  
not	
   been	
   able	
   agree	
   on	
   the	
   amount	
   of	
   transfers	
   so	
   far,	
   but	
   a	
   minimal	
   amount	
   of	
   transfers	
  
seems	
  to	
  be	
  the	
  best	
  solution.	
  	
  
            	
  
            Under	
  the	
  current	
  financing	
  law,	
  the	
  “special	
  financing	
  act”	
  of	
  1989,	
  the	
  communities	
  
depend	
  entirely	
  on	
  funding	
  from	
  the	
  federal	
  government.	
  By	
  transferring	
  some	
  competences	
  
and	
  a	
  part	
  of	
  the	
  personal	
  and	
  indirect	
  tax	
  revenues	
  to	
  the	
  regions,	
  Belgium	
  would	
  grant	
  the	
  
regions	
  more	
  autonomy	
  and	
  give	
  them	
  some	
  of	
  the	
  competences	
  they	
  have	
  been	
  asking	
  for.	
  
Brussels	
  should	
  then	
  be	
  compensated	
  for	
  the	
  taxes	
  lost	
  to	
  commuters	
  that	
  work	
  but	
  don’t	
  live	
  
in	
   Brussels.	
   Transfers	
   are	
   essential	
   to	
   give	
   the	
   regions	
   better	
   tools	
   to	
   fight	
   unemployment,	
  


	
                                                                                                                                                             4	
  
embrace	
   innovation	
   and	
   create	
   incentives	
   for	
   good	
   governance,	
   while	
   also	
   relieving	
   the	
  
federal	
  state	
  from	
  some	
  of	
  its	
  burden.	
  While	
  transfers	
  are	
  necessary,	
  the	
  principle	
  of	
  federal	
  
solidarity	
  should	
  remain,	
  and	
  therefore	
  competences	
  such	
  as	
  justice,	
  social	
  security	
  and	
  public	
  
debt	
  need	
  to	
  be	
  kept	
  at	
  the	
  federal	
  level.	
  	
  
            	
  
            This	
   compromise	
   would	
   divide	
   powers,	
   without	
   dividing	
   the	
   country.	
   While	
   this	
  
solution	
  might	
  have	
  downsides	
  and	
  needs	
  to	
  be	
  discussed	
  in	
  more	
  details,	
  it	
  may	
  –	
  rather	
  than	
  
break	
  up	
  the	
  country	
  –	
  strengthen	
  it,	
  providing	
  much-­‐needed	
  economic	
  and	
  political	
  stability.	
  	
  




	
                                                                                                                                            5	
  

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Belgium's identity crisis

  • 1. Biographies   Steven  Lauwers  is  a  Belgian  (Flemish)  national  currently  pursuing  a  Master  of  Public  Policy  at   the   Hertie   School   of   Governance.   After   having   received   his   degrees   in   Corporate   Communications   and   International   Communication   from   Plantijn   Universtiy   College   in   Antwerp,   he   worked   with   the   World   Health   Organization   (WHO)   in   Geneva   for   nearly   3   years,   representing  WHO  as  a  spokesperson  during  the  H1N1  Influenza  outbreak.     Godefroy  Grosjean  is  a  Belgian  (Walloon)  national  studying  public  policy  at  the  Hertie  School   of   Governance.   He   is   currently   doing   a   professional   year   with   the   German   International   Cooperation  (GIZ)  in  China.  Godefroy  holds  a  M.Sc.  in  Economics  from  Maastricht  University.   He   focuses   on   environmental   policy   with   a   particular   interest   for   sustainable   urban   development.     BELGIUM’S  IDENTITY  CRISIS     On   the   15th   of   February   2011,   after   250   days   without   a   government,   Belgium   snatched   the  world  record  for  the  longest  period  without  a  government  from  Iraq.  A  debatable  trophy,   but   nonetheless   the   country   seemed   finally   to   have   found   something   they   can   all   celebrate   together:   in   Antwerp   DJs   were   on   hand,   Liege   staged   a   flash-­‐mob,   Louvain   handed   out   free   chips  and  Ghent  featured  250  protesters  who  'dressed  down  to  the  bare  essentials’.  How  did   we  get  there  and,  more  importantly,  where  do  we  go  from  here?     Looking  back  in  history,  Belgium  could  be  seen  as  an  “accidental”  nation.  In  1815,  at   the   end   of   the   Napoleonic   Wars,   the   Congress   of   Vienna   gave   the   “Southern   Netherlands”   (previously   and   successively   under   Spanish,   Austrian   and   French   rule)   to   the   Kingdom   of   Netherlands.   That   region   was,   contrary   to   the   Northern   provinces,   homogeneously   Roman   Catholic.  During  the  Dutch  rule,  the  Southern  provinces  were  underrepresented  politically  and   exploited   financially,   compared   to   the   Northern   Provinces   (today’s   Netherlands).   This   situation   created   tensions   and   eventually   led   to   the   Belgian   revolution.   The   big   powers   in   Europe,  afraid  of  potential  instability  in  the  region,  recognized  the  new  country  rather  quickly.       At   a   period   of   nation   building   in   Europe,   Belgium   declared   French   as   its   only   official   language.   The   Belgian   elites   were   willing   to   dissociate   themselves   from   the   previous   Dutch   rule:   the   ruling   class   turned   to   French   (all   over   Belgium,   including   Flanders),   while   the   masses   spoke  Flemish  in  the  North  and  Walloon  in  the  South.  The  arrogance  of  the  French-­‐speaking     1  
  • 2. Belgian   elite   during   the   industrialization   and   the   poor   living   conditions   of   the   working   class   caused  a  lot  of  resentment.  During  the  20th  century,  French  was  slowly  replaced  by  Dutch  in   Flanders,   while   in   Wallonia   French   became   the   main   language   –   a   natural   development   as   Walloon  was  a  Latin  dialect  much  closer  to  French.  During  that  process,  a  lot  of  the  frustration   existing   in   Flanders   against   the   previously   French-­‐speaking   bourgeoisie   shifted   towards   the   French-­‐speaking  part  of  Belgium.     In   the   late   1960s   the   economic   lead   was   transferred   from   the   South   to   the   North..   Wallonia,   long   among   the   most   prosperous   and   technologically   advanced   regions   of   Europe   due  to  its  heavy  industries  (coal  and  steel-­‐based),  entered  a  period  of  decline,  similar  to  other   regions   with   comparable   economic   structures.   Flanders   benefited   at   the   same   time   from   a   rapid   development   of   its   trade-­‐oriented   SMEs   and   light   industries,   supported   by   the   fast   growth  of  the  Antwerp  harbour.  Due  to  the  lack  of  economic  vision  of  Wallonia’s  politicians,   the  southern  part  of  Belgium  was  not  able  to  recover  completely  –  despite  significant  social   security   transfers   from   the   North   to   the   South   –   and   Flemish   people   became   increasingly   reluctant  to  subsidise  and  support  the  economically  depressed  Walloons.       A  major  turning  point  in  the  political  history  of  Belgium  was  the  constitutional  reform   of  1970.  The  country  was  divided  into  language  communities,  not  only  increasing  the  division   of   the   country   on   the   basis   of   language,   but   also   restructuring   its   politics:   Belgium’s   conservative  Catholic  party  split  into  Francophone  and  Flemish  halves,  followed  by  the  liberals   and   the   socialists.   Belgian   politics   became   tribal,   with   each   party   championing   its   own   linguistic  agenda.  Belgium  now  consists  of  federated  entities  –  language  based  “communities”   –  and  the  three  regions,  Flanders,  Wallonia,  and  Brussels.  Competences  are  shared  between   these  three  levels  of  government  while  matters  like  social  security,  justice  and  foreign  affairs   remain  a  federal  responsibility.         The  complicated  structure  of  the  Belgian  state,  and  a  history  of  unsuccessful  requests   from  Flanders  for  state  reform,  has  led  to  growing  political  tensions  over  the  last  years  in  the   country.  At  the  most  recent  election,  about  8  months  ago,  many  Flemish  voters  sought  refuge   in  the  one  party  that  had  been  criticising  the  political  mess  all  along:  the  New  Flemish  Alliance   (NVA).  This  nationalist  party,  which  only  held  a  few  seats  in  the  Senate  and  the  Chamber  of     2  
  • 3. Representatives  before  2010,  won  the  elections  in  Flanders  with  nearly  30%  of  the  votes.  In   Wallonia,   almost   40%   of   the   voters   put   their   hopes   in   the   Socialist   Party   (PS).   Both   party   presidents   embody   what   the   different   linguistic   communities   feel   the   other   one   stands   for:   Bart  De  Wever  (NVA)  sees  separatism  as  the  solution  to  the  current  chaos  and  represents  a   Flemish  part  that  is  clearly  in  search  of  its  identity,  whereas  Elio  Di  Rupo  (PS)  represents  the   kind  of  socialism  the  Flemish  voters  dislike,  the  long-­‐term  social  security  and  support,  which   they  perceive  as  the  opposite  of  change  and  progress.       Belgium’s  unwieldy  political  system  makes  coalition  governments  inevitable  and  with   Flemish  politicians  squabbling  with  Walloons,  and  just  as  fiercely  among  themselves,  political   paralysis   ensued.   In   the   ensuing   coalition   negotiations,   the   parties   have   chosen   to   get   a   federal   reform   agreed   first   before   building   a   government.   This   complex   bargaining   process   between  Belgium’s  seven  largest  parties  is  still  ongoing  –  increasingly  paralysing  the  country.     Putting  history  aside  for  a  bit,  what  hinders  Belgium  to  find  a  sustainable  solution  and   what  are  our  recommendations?  Parties  like  the  NVA  have  often  highlighted  the  long-­‐lasting   social   transfer   from   Flanders   to   Wallonia   as   a   reason   for   the   independence   of   the   Northern   region.  We  should,  indeed,  fine-­‐tune  our  welfare  system.  But,  while  infinite  transfers  are  not  a   solution,  solidarity  is  part  of  the  European  model  we  have  to  defend.  Confidence  in  cultural   exchange   and   mutual   enrichment,   as   well   as   economic   innovation,   is   key   for   long-­‐term   growth.  The  nationalism  put  forward  by  the  NVA  is  at  the  antipode  of  such  approach.     Language  issues  have  played  another  major  role  in  the  Belgian  disunion.  The  Flemish   were  relatively  more  successful  than  the  French-­‐speaking  at  mastering  both  main  languages   of  the  country.  However,  the  young  Belgian  generations  are  evolving  with  different  horizons   than  four  decades  ago.  They  want  to  discover  Europe  and  the  rest  of  the  world,  which  may  be   observed  in  the  popularity  of  the  Erasmus  exchange  program,  and  are  eager  to  learn  English,   Chinese,  Spanish  or  even  German  to  communicate  with  the  rest  of  the  world.  But  becoming   increasingly   cosmopolitan,   our   generation   should   realise   this   language   “fundamentalism”   is   outdated  in  today’s  society.  After  all,  what  is  more  essential,  the  communication  itself  or  the   means  used  to  exchange?       3  
  • 4. The  EU  is  pressuring  Belgians  to  calm  down  and  act  sensibly,  but  tribal  linguistic  and   cultural  passions  often  pre-­‐empt  rational  behaviour.  Belgium  is  facing  its  worst  troubles  just   as  the  EU  confronts  the  gravest  challenge  to  the  Euro.  Belgium  should  realise  that,  as  one  of   the  founding  members  of  the  EU  and  host  to  its  political  centre,  it  must  remain  a  small-­‐scale   example   for   European   integration.   European   unification   is   based   on   looking   beyond   the   nation-­‐state;   Belgium   cannot   dissect   itself   without   setting   a   worrisome   precedent:   not   only   Spain  and  Italy  would  fret  about  the  precedent  of  rich  regions  pulling  away  from  poorer  ones;   Scottish   nationalists   speak   of   independence   within   Europe   and   many   ex-­‐communist   countries   have   significant   national   minorities:   think   of   Hungarians   in   Slovakia.   Splitting   Belgium   would   break  the  mystique  of  European  integration.       So  far  the  Belgian  citizens  have  demonstrated  a  certain  lassitude  towards  the  current   events.  But  now,  250  days  after  the  elections,  Belgium  is  probably  one  of  the  only  countries  in   the  world  that  is  organising  protests  in  favour  of  a  government,  rather  than  against  it.  While   the   global   political   framework   is   evolving   dramatically,   Belgium   wastes   time   debating   only   minor   issues.   Public   debt   is   now   at   around   100%   of   GDP   and   the   spread   of   Belgian   10-­‐year   bonds   over   the   German   benchmark   is   three   times   as   high   as   at   the   beginning   of   2010.   Not   finding  a  solution  will  result  in  a  rising  debt  ratio  and  complete  chaos.       It   is   obvious   we   cannot   stay   where   we   are,   with   so   much   political   capital   invested,   but   where  exactly  do  we  go  from  here?  One  of  the  solutions  being  discussed  by  Belgium’s  political   parties   –   and   the   solution   favoured   by   the   authors   –   consists   of   a   partial   transfer   of   competences  and  tax  revenues  from  the  federal  state  to  the  regions.  The  seven  parties  have   not   been   able   agree   on   the   amount   of   transfers   so   far,   but   a   minimal   amount   of   transfers   seems  to  be  the  best  solution.       Under  the  current  financing  law,  the  “special  financing  act”  of  1989,  the  communities   depend  entirely  on  funding  from  the  federal  government.  By  transferring  some  competences   and  a  part  of  the  personal  and  indirect  tax  revenues  to  the  regions,  Belgium  would  grant  the   regions  more  autonomy  and  give  them  some  of  the  competences  they  have  been  asking  for.   Brussels  should  then  be  compensated  for  the  taxes  lost  to  commuters  that  work  but  don’t  live   in   Brussels.   Transfers   are   essential   to   give   the   regions   better   tools   to   fight   unemployment,     4  
  • 5. embrace   innovation   and   create   incentives   for   good   governance,   while   also   relieving   the   federal  state  from  some  of  its  burden.  While  transfers  are  necessary,  the  principle  of  federal   solidarity  should  remain,  and  therefore  competences  such  as  justice,  social  security  and  public   debt  need  to  be  kept  at  the  federal  level.       This   compromise   would   divide   powers,   without   dividing   the   country.   While   this   solution  might  have  downsides  and  needs  to  be  discussed  in  more  details,  it  may  –  rather  than   break  up  the  country  –  strengthen  it,  providing  much-­‐needed  economic  and  political  stability.       5