CONFIDENT NEW FLEMISH GOVERNMENT READY TO GO

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 000986 SIPDIS STATE FOR EUR/WE E.O. 12958: DECL: 07/26/2019 TAGS: PGOV BE SUBJECT: CONFIDENT NEW FLEMISH GOVERNMENT READY TO GO Classified By: Acting Political-Economic Counselor Robert Kiene, reason s 1.4 (b) and (d). ¶1. (U) On July 13 the nine members of the 2009-2014 Flemish government were sworn in by the Flemish Parliament. Kris Peeters of the Christian Democratic Party (CD&V) will lead his second Flemish government, in a three-party coalition that includes the CD&V, the Socialists (sp.a),and the nationalist, independence-minded New Flemish Alliance (N-VA). The previous Flemish government was also a three-party coalition, but the N-VA has replaced the Liberals (OpenVLD) in the new government. -------------- The New Team -------------- ¶2. (U) The Peeters II Flemish government includes nine ministers, with portfolios outlined below. Peeters' cabinet has four women and two newcomers from the private sector: Kris Peeters (CD&V)............Minister-President ............Minister of the Economy, External Relations, Agriculture, and Rural Affairs Ingrid Lieten (sp.a)...........Vice Minister-President ...........Minister of Innovation, Public Investment, Media, and Poverty Reduction Geert Bourgeois (N-VA).........Vice Minister-President .........Minister of the Civil Service, Home Affairs, Integration, and Tourism Jo Vandeurzen (CD&V)...........Minister of Welfare, Public Health, and Family. Pascal Smet (sp.a).............Minister of Education, Youth, Equal Opportunities, and Brussels Hilde Crevits (CD&V)...........Minister of Mobility and Public Works Freya Van den Bossche (sp.a)...Minister of Energy, Housing, and Urban and Social Economics Philippe Muyters (N-VA)........Minister of Finance, Budget, Business, Urban Planning, and Sports Joke Schauvliege (CD&V)........Minister of the Environment, Nature, and Culture -------------- Comment -------------- ¶3. (C) The formation of a new Flemish government, under the supremely confident Flemish political star Kris Peeters, comes at a time of financial crisis in both Flanders and Belgium. At the same time, it is tinged with a rise of Flemish nationalism. In forming a government with the N-VA, many observers believe Peeters has brought a wild-card into his government, causing a certain amount of paranoia on the part of Francophones, who fear that Flanders will aggressively pursue autonomy and renegotiation of regional competencies at the expense of a united Belgium. The NV-A already caused similar tensions when it was a member of the federal government prior to the breakup of its allinace with the CD&V. However, Flemish political commentators for the most part disagree. After failing to achieve any progress with Francophone politicians during 2009 discussions on institutional reform, Kris Peeters and his government will pursue a new tack. Academics at the University of Antwerp, the University of Gent, and an N-VA member of the Flemish Parliament each told Poloff separately that the Flemish government would do as much as possible with its existing powers, and in the process spend as much money as possible. ¶4. (C) Specifically, Peeters II has proposed a child education bonus for every child attending a Flemish school and an increased payout for hospital stays in Flanders. These new benefits hold an advantage for all three Peeters II BRUSSELS 00000986 002 OF 002 parties. The CD&V looks like a more compassionate and capable party, the N-VA gets new benefits coming from Flanders and not Belgium, and sp.a increases social payouts. The Francophone parties, however, see a threat to the primacy of the Belgian state's role in providing social security -- considered one of the last forms of "glue" holding the federal state together. They know that Wallonia and the Brussels Capital Region cannot match this payout from their own budgets, and they have threatened to sue the Flemish government in Belgian courts to get it to back down. The real problem, according to the academics, is that any move by Francophones to stop the Flemish government doing more in the social arena makes the GOB appear to be a threat to Flemish voters' interests, and furthers the growing gap in understanding between the two communities. Another aim of the benefit increase is to reduce the Flemish government's budget surplus and put an end to the practice of returning tax receipts to the federal government to bolster the GOB's solvency. In the words of a Flemish government civil servant, "eventually, the Francophones will come to us when they see Belgium's money drying up, and ask us for state reform. We will now wait for them." BUSH .