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.

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The New Team
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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

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Comment
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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

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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
.