Talks on the Flemish budget will resume on Saturday afternoon, with coalition partners Vooruit and CD&V both reacting coolly to an N-VA proposal to turn the birth grant into an investment fund for children.
Under the idea, revealed on Saturday morning, the current €1,300 birth premium would be placed in a Growth Fund rather than paid directly to parents. The money would be invested and paid out to the child when they reach adulthood, potentially growing to about €4,000 after 18 years.
Vooruit and CD&V said they found it odd that the proposal was being introduced during budget negotiations. Both parties questioned what problem it would actually solve.
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A source within Vooruit said new ideas were welcome, but warned that the plan would hit people’s purchasing power. The party argued that parents need the money when a child is born, not years later.
CD&V also rejected the proposal. A party source said the birth premium exists to support parents and that the party had already made clear it was not in favour.
Both coalition partners said the N-VA proposal appeared to be inspired by a Norwegian model. But they noted that parents in Norway benefit from a much broader support system, including lengthy parental leave.
They also pointed out that Norway’s fund is financed through revenues from the country’s natural resources, rather than through money taken from the budget.
According to Friday’s budget table, savings on the Groeipakket family benefits scheme were also under discussion, through changes to supplements on top of the basic package. Coalition partners would consider that manageable if the reform were mainly aimed at tackling abuse.
An increase in water bills and in registration duties on the family home was also said to be included in Friday’s table.
One of the most advanced files concerns service vouchers. The three parties are said to be close to agreement on raising the price from €10 to €12.
For people who buy large numbers of vouchers, the price would rise further to €13. CD&V and Vooruit insist, however, that any increase must include social corrections, including for people with disabilities.
Savings in the number of Flemish civil servants are also on the table, although that would require social consultation. According to one source, that could also mean the public broadcaster VRT would be expected to contribute through cuts to staff and operating budgets.
