Belgium –
Minister of Finance Vincent Van Peteghem is pushing to introduce an advantageous government bond this week. But the CD&V member clashes with Prime Minister Alexander De Croo (Open VLD).
A true test of strength between East Flemish leaders. That has now become the battle over the new government voucher. This will be introduced this week at the request of the Debt Agency. There they want to issue a voucher with a term of one year and thereby entice the general public with a significantly lower withholding tax of 15 percent.
But a disagreement has arisen over the state voucher between the three East Flemish leaders from the federal government, who will also face each other at the June 9 ballot box. In addition to Van Peteghem and De Croo, this also includes Green Deputy Prime Minister Petra De Sutter. The last two are against the plans of the Agency and Minister Van Peteghem to issue another discount voucher and thus raise money to pay off the government’s debt.
According to liberals and greens, Van Peteghem only wants to score politically within a few months of the elections. They even suspect him of wanting to issue a similar government bond the week before the elections. In addition, they also see substantive objections: borrowing is cheaper in the long term than in the short term and it is also not fair that 30 percent withholding tax must be paid on financial products from banks and only 15 percent on those from the government. State Secretary for Budget Alexia Bertrand (Open VLD) therefore gave negative advice last week for Van Peteghem’s plans.
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Minister Van Peteghem and State Secretary Bertrand. — © BELGA
However, according to the CD&V member, these arguments are incorrect. He reiterated last weekend that his government bond yields 54 million for the budget and is also beneficial for savers. “People don’t want this to be a success (…) But it would be irresponsible not to do this,” he stated on VTM on Sunday.
Van Peteghem wants De Croo to convene the government on the file as soon as possible, because the Agency will launch the voucher next Thursday. But the item will only be on the agenda of the core cabinet on Wednesday and on the agenda of the Council of Ministers on Friday. Only the latter can overrule Bertrand’s decision, but Friday may be too late.