Pola, Giancarlo, 1999, “A Comparative View of Local Finances in EU Member Countries: Are There Any Lessons to be Drawn?” in Fiscal Federalism in the European Union.
Van der Stichele, G. and M. Verdonck, 2001, “Les Modifications de la Loi Spéciale de Financement dans L’accord du Lambermont,” CRISP, No. 1733.
Von Hagen, J., A.H. Hallett, and R. Strauch (2001), “Budgetary Consolidation in EMU,” Economic Papers, Centre for Economic Policy Research, No. 148.
Prepared by Jianping Zhou.
The relationship among these government entities is complicated by the fact that the regions are defined territorially and the communities linguistically. As a result, the Brussels-Capital region has the presence of both the French and the Flemish community. The Flanders and the Flemish community have merged their public institutions into what is now called the Flemish Community.
In this Chapter, the regions, the communities, and the provinces and communes will often be collectively referred to as “local governments.”
When the central government collects taxes and transfers them in whole or in part to local governments, it is necessary to determine whether the revenues should be considered to be those of the central government (and the related transfer as grants) or those of the local governments (the central government acts only as their agent). According to the OECD definition, tax revenues are attributed to regional and local governments if (i) the regional and local government have exercised some influence or discretion over the setting of the tax or the distribution of its proceeds; (ii) under the provisions of the legislation they automatically and unconditionally receive a given percentage of the tax collected or arising in their territory; or (iii) they receive tax revenue under legislation leaving no discretion to the central government. (OECD, 2001; and OECD, 1999)
Belgium National Bank, Annual Report 2000.
In 1993 (the Saint-Michel agreement); in 1999 (the Saint-Éloi agreement), and in 2001 (the Lambermont agreement). See Van der Stichele and Verdonck (2001) for a detailed discussion on these agreements.
The HFC was established in 1936 as an advisory body within the Ministry of Finance.
Belgian Stability Program 1999–2002.
The HFC has no explicit sanction instruments if governments were to miss their policy targets.