flandersfocus on THE DUTCH SPEAKING PART OF press review weekly, does not appear in July • number 1 • 7 January – 13 January 2005

Major diamond dealers step INTRODUCTION From 12 to 22 January the 84th Motor Show will be held at down from High Diamond Heizel in . Febiac, the federation of the motor industry and organiser of the show, Council expects as many as 750,000 visi- tors. On 11 January the official opening took place in the presence of Prince Filip and Premier Verhofstadt and a whole host of VIPs. While the Prince let himself be led from one impossibly fter the departure of Peter Meeus also not re-elected. Following the expensive racing car to the next, the Premier str- Aas Director-General of the changes the influence of the major dia- ressed in his speech the importance of environmen- tally friendly technology. Finance Minister Reynders High Diamond Council, the mond firms in the Board of Directors was also able to announce an environmentally Council appears to be losing represen- has been significantly reduced (FF). friendly first. The EU Commission has allowed Bel- tativeness again. On 12 January, only a gium to cut the duty on biofuel. From 1 May ‘biodiesel’ will be available here, a cocktail of fossil few days after the resignation of Meeus, MARC BALLIEU • • and biofuels, for the same price as ordinary diesel. Dilip Mehta, the Indian boss of 13 JANUARY Biodiesel will initially contain only 2.45% biofuel, but Antwerp’s biggest diamond firm Rosy from 2007 this quantity will be increased to 4.29%. That same year petrol containing bioethanol, the Blue, resigned as director. In an The two major players are now no environmentally friendly alternative for petrol cars, announcement Mehta said that major more and as a result Antwerp risks will also become available. players are clearly no longer welcome. dropping into the ‘third division’ as a That perhaps did not make much of an impression on those present. Just like road safety, environmental He is referring to the resistance of the diamond city. There have been rum- friendliness is not the first thing that interests the small diamond dealers to the predomi- blings for months in the High Dia- average potential buyer, according to a Febiac nance of the big firms, the sightholders. mond Council. The Board of Directors spokesman in (12 January). The cus- tomer is interested in comfort, luxury and prestige Claim Pluczenik, the representative of includes representatives of dealers, in- and since the motor show is first and foremost a the international Pluczenik group, was dustry, diamond exchanges, banks, dia- showroom, these are also the most important sales mond producers and the government. arguments. Perhaps an even greater sales argument is price. In CONTENTS The representatives of the smaller that respect the car sector is beginning increasingly traders refused to allow major firms to resemble the textile sector, fears (12 Janu- Politics such as Rosy Blue and the British De ary). The motor show month of January appears to be becoming the bargain month. European car man- A purple passion in the Federal Beers to try and determine the High ufacturers in particular are trying to get the better of Parliament 2 Council’s policy. That resulted in legal each other with special campaigns and super-dis- Fons Borgignon succeeds Rik Daems as action. The Association of Cut Dia- counts of 20% and more. In this way they are trying to buy a share of the market, but are actually bring- VLD parliamentary party leader 2 mond Dealers (Vereniging van Hande- ing the entire sector into difficulties, the paper laren in Geslepen Diamant, BVGD) claims. After all, the bargains are not unconditional. Economy, environment and budget policy mainly targeted Dilip Mehta. His ap- Shrinking margins are transferred to the supplier firms of the car manufacturers and to dealers. That Antwerp Diamond Council rudderless pointment as representative of the explains, for example, the loss of plastics supplier for after departure of Peter Meeus 3 dealers was not carried out correctly, car interiors Recticel in 2005 or the halving of the Household waste will no longer be they claimed. Mehta had enough and number of car dealers in recent years. De Tijd fears that car manufacturers themselves will be next. Then dumped 3 stepped down. The Indian accuses his there will be no choice but to follow the textile pro- Daily purchases give the impression fellow dealers of ‘closing their eyes to ducers to the low-wage countries. of a higher cost of living 4 the economic reality. The HRD risks Nonetheless, manufacturers should not complain about the interest from consumers. In spite of the Belgacom acquires 91% of Telindus 6 becoming an organisation that contin- growing traffic queues each year, the high fuel Federal budget is balanced again 6 ues to dream of yesterday. When the prices, the speeding cameras and the 30 zones near schools that spoil the pleasure of driving, Belgians do wind blows, some look for air-raid not appear moved to leave their cars at home. There Social Policy shelters, others build windmills.’ is a fascination with them against which fiscal incen- Dewael wants stricter application of law tives and free public transport are clearly no match. In a year when the government abolished the tax on aid to illegal immigrants 6 www.diamonds.be benefit for off-road vehicles by prohibiting them Van Velthoven wants quota for the from being registered as light goods vehicles, more recruitment of immigrants 6 than ever have been sold. The aura of the automobile appears unassailable and that also leaves its traces in the family budget. After the home, it still remains the Media and Mobility second biggest expense item. Record year for use of public transport 7 VRT boss Mary fuels media war 7 Frank Vandecaveye | editor in chief

focus on • 7 January -13 January 2006 • Number 2 2 POLITICS

FEDERAL PARLIAMENT his political ‘friends’. For a great many of his fellow party members, Daems' A purple passion in amorous escapades are a grateful rea- son to give him the coup de grâce. For parliament far too long Rik has remained the eter- nal political promise. Daems issued a press statement that he could no longer carry on in the der to fare better at the next poll. After given circumstances and at the same time withdrew as Parliamentary the municipal elections not much more Party Leader should be expected of the Federal Gov- ernment, which has to have the 2007 budget prepared by 10 October. On the or a whole week the rumours the new couple embodies the love of evening of 8 October the campaign for Fbuzzed about that Premier Verhofs- the Liberal and Socialist parties for each the 2007 elections will be kicked off. tadt (VLD) was looking for a top job for other and the reconciliation between his party's Parliamentary Party Leader the Flemish and Walloon Communi- ■ in the Federal Chamber, Rik Daems. ties. But De Tijd also regrets the ero- The directorship of the Federal Invest- sion of the rule that the private lives of ment Company and the Federal Partici- politicians are not reported in the Fons Borgignon suc- pation Company was mentioned. media (FF). Everyone was still in the dark regarding ceeds Rik Daems as the reason for this sudden change of Opinion VLD party leader in career. Had Daems had enough of poli- tics now he was no longer a minister? STEFAAN HUYSENTRUYT • DE TIJD • the Federal Until on 10 January Daems himself 11 JANUARY Parliament spoke openly of his failed marriage in the family magazine ‘Dag Allemaal’ There was an exception to the unwrit- and that same day reported on ten rule: if the private life affected the FF EDITOR his new relationship with Walloon political actions of the man/woman in Socialist MP Sophie Pécriaux, and sev- question, it could be reported. In recent On 13 January, in the presence of Party eral hours later VTM added that she years the media have given an increas- Chairman Bart Somers, the VLD MPs was pregnant by him. At 5 o'clock ingly broad interpretation to this excep- appointed Fons Borgignon as their new Daems issued a press statement that he tion. Parliamentary Party Leader until the could no longer carry on in the given Once again the continued political end of the legislative period in 2007. circumstances and at the same time activity of Rik Daems is the official rea- Borgignon was the only candidate. withdrew as Parliamentary Party son for the ups and downs of the man's De Standaard (13 January) sees in Leader. VLD Chairman Bart Somers love life appearing in the media. But the Borgignon a consensus figure with ex- claims that at no time did his party real reason is the high entertainment perience who can bring about peace. apply any pressure and that it will con- value of the amorous escapades of the Fons Borgignon is Chairman of the Jus- tinue to respect Daems’ privacy. VLD man from Leuven. Newspapers, tice Committee and is respected as a Commentators have their own view. radio and TV stations are governed by well-grounded lawyer. De Standaard (11 january) claims that circulation, audience and viewing fig- Younger, more ambitious MPs such as in the end he was forced to resign ures. Juicy stories boost these figures. Bart Tommelein or Hilde Vautmans because he kept his closest entourage Information has evolved into infotain- were also tipped as successors in the guessing about the true facts right to ment; democracy has deteriorated into press, but that would have meant that the end. The paper also believes his par- emocracy. ‘the Daems era’ was past, claims the liamentary faction was entitled to be Politicians are at least partly to blame paper. told of its chairman’s relationship with for this development. The end of ideolo- Borgignon is a relative newcomer to a member of another parliamentary gies means that parties are becoming the party. In 2001 he was still (crisis) party and that it was up to the faction to more and more exchangeable. Ideologi- Chairman of the Volksunie, just before decide whether Daems was fit to con- cal profiling is being exchanged for that party became defunct and broke tinue as its mouthpiece. emotional positioning. In their search up into the N-VA and Spirit. At the directs its arrows at the lack for the voter and reader-listener-viewer time a number of VU representatives of respect for the privacy of politicians the interests of politicians and media opted for the VLD. in the Belgian media. The paper regrets often run parallel. But sometimes they As Parliamentary Party Leader Borgig- that the media have ditched the old collide, as now with the reports of Rik non will have to delineate parliamen- code which stated that the private life Daems’ new love. tary strategy and be a major voice in of politicians could only be discussed if These reports need not damage the the parliamentary debate as leader of it had political relevance. Any relation- man's political career. If he wanted to, the biggest majority parliamentary fac- ship between celebrities now appears Daems could easily continue to lead tion. newsworthy. That was also the case the Flemish Liberals in the Chamber. several months ago when the relation- Just like Patrick Dewael, after the leak- ship of fellow party member and Home ing of his relationship with Greet Op de Affairs Minister Patrick Dewael with Beeck, remained in office as Home VRT journalist Greet Op de Beeck was Affairs Minister. The fact that the smeared all over the press, says De Mor- Daems affair has damaged him politi- gen. De Tijd concludes ironically that cally is not down to the media but to ■

focus on FLANDERS • 7 January -13 January 2006 • Number 2 ECONOMY AND ENVIRONMENT 3

DIAMOND SECTOR these various groups do not always run parallel, to put it mildly. Antwerp diamond sector But more than the diversity of the Board of Directors, shortsightedness rudderless following and self-interest are behind the impasse in Antwerp's Hoveniersstraat. departure of Peter Meeus Diamond dealers will never get a medal for strategic, long-term thinking. They Meeus is also questioning publicly whether the collective leadership of will remain first and foremost mer- the HRD is still viable chants for whom a euro is a euro. In particular, dealers in cut diamonds have been kicking up a real fuss in recent months. A complaint was lodged eter Meeus, Director-General of the Opinion against De Beers with the European PDiamond High Council, is stepping Commission, because the largest dia- down. His decision was brought about TOM PEETERS • DE TIJD • 7 JANUARY mond producer’s new sales strategy by the persistent conflicts that have would restrict competition. Appoint- landed the Council in a slump. This The fact that Meeus is stepping down is ments to the Board of Directors were even resulted in the Antwerp Diamond a drain on the Antwerp diamond trade. systematically opposed. This pestering Conference not being held this year. Meeus introduced much-needed trans- and the infantile litigious culture are Meeus believes that under such cir- parency to a sector that is chiefly damaging the entire Antwerp diamond cumstances it is difficult for him to still known to the general public for its district. create ‘added value’. He is also ques- intrigue and shady dealing. Meeus Peter Meeus called 2005 an annus hor- tioning publicly whether the collective clearly saw the challenges facing the ribilis. If the Antwerp diamond dealers leadership of the HRD is still viable. Antwerp diamond district. He also do not quickly shake hands again and Developments in the diamond trade reformed the Board of Directors to give stop making each other’s life hell with have meant that it is becoming more it more clout. futile proceedings, 2006 will undoubt- and more difficult to have the interests Ironically that became the final nail in edly be an annus horribilis for the of all parties in the sector defended by Meeus' coffin. The Antwerp diamond whole sector. They are already laughing one organisation, he concludes. Direc- sector, which has a turnover of 34 bil- themselves silly in the other major dia- tors began to question the mandates of lion dollars and still accounts for mond centres of Dubai, Tel Aviv, Mum- other directors (among others of Dilip almost 7% of Belgian exports, has bai and New York. Mehta, CEO of the Indian diamond become ungovernable. This ungovern- company Rosy Blue), resulting in legal ability is partly ingrained in the struc- www.diamonds.be proceedings and even more division, ture of the Diamond High Council. against which Meeus claims he had lit- Dealers in uncut and cut diamonds sit tle remedy. Dramatic calls from him- on the HRD’s Board of Directors along- self and Provincial Governor Camille side diamond cutters. The unions have Paulus to close ranks were to no avail got their seats, likewise the banks and (FF). major diamond groups. The interests of ■

ENVIRONMENT ing capacity. ‘I therefore do not intend continuing to grant departures for Household waste will no household waste. And for industrial waste the permitted departure will be reduced significantly,’ says Peeters. ‘In- longer be dumped stead of the 551,500 tonnes of 2005, only 440,500 tonnes of industrial rom 2006 no more household waste belonging to the intermunicipal com- waste will be able to be dumped in Fwill be dumped in Flanders and the panies IOK and Ivarem. Flemish Envi- 2006.’ dumping of industrial waste will be sig- ronment Minister Kris Peeters (CD&V) In addition, the waste mountain is be- nificantly reduced. According to the points out that the Flemish Region will ing capped. ‘In 2007 Flanders may only Flemish waste management regula- thus be the first region in Europe where produce as much waste as in 2000. And tions (Vlarea), there has actually been a all household waste is processed or next year each Fleming may only pro- ban on dumping for years, but up to incinerated (FF). duce 150 kilos of unrecycled residual now departures have been granted each waste. Up to now only slightly more year. This year there is no need, because DOMINIQUE MINTEN • DE STANDAARD • than half of the municipalities have two new processing plants can process 10 JANUARY achieved this target. To improve this I all dumped household waste and some want to step up prevention, improve of the industrial waste. In 2005, 80,000 tonnes of household selective collection further and fully These are a fluid bed plant belonging to waste and 511,500 tonnes of industrial honour the principle of “the polluter the waste-processing companies Indav- waste were still taken to dumps in- pays”.’ er and Sita in Beveren with a capacity of stead of to the incinerators. www.indaver.be/www.sita.be 460,000 tonnes and a mechanical-bio- But now two large incinerators have www.ivarem.be logical pre-treatment plant in Geel been opened in Geel and Beveren, so with a capacity of 150,000 tonnes that Flanders no longer lacks process- ■

focus on FLANDERS • 7 January -13 January 2006 • Number 2 4 ECONOMY AND SOCIAL POLICY

FINANCE ASYLUM POLICY Daily purchases give consumer impression Dewael wants law on aid for that cost of living has illegal immigrants to be gone up applied more strictly FF EDITOR A discussion also ensued between the Minister and certain refugee organisa- A study by ING Bank shows that at the tions on the punishability of people who shelter illegal immigrants end of December the general level of prices was 15.5% higher than when the euro was introduced at the begin- ome Affairs Minister Patrick FILIP ROGIERS • DE MORGEN • 9 JANUARY ning of 1999. That corresponds to an HDewael (VLD) wants to step up the average annual inflation of 2.4%. expulsion policy for failed asylum- Groen! wants Home Affairs Minister seekers. Now a special committee, the Patrick Dewael (VLD) to apologise to It is mainly daily purchases that have so-called Vermeersch Committee, has the ‘hundreds of Flemings’ who make risen sharply since the introduction of produced a report in which it describes an effort to help people without papers. the euro. A pint of beer, for example, the procedures to be followed when ‘With these comments Minister De- has gone up by 35%, a bag of chips forcibly returning asylum-seekers, the wael is turning all citizens and organi- 24%, bread or a bread roll 25%. These time has come to speed up the number sations who help people without pa- frequent small purchases give people of expulsions again, claims the Minis- pers into criminals,’ says Groen! the feeling that life has in fact become ter. Because anyone living illegally in Chairwoman Vera Dua spoke of a much more expensive. But perception Belgium need not count on the Minis- ‘witchhunt’ on the VRT programme and reality are often quite different. ter for clemency. In any case, Dewael is De Zevende Dag. also hoping that imminent agreements ‘The last thing I want to do is encour- Durable electrical products such as mi- with Russia and the Congo on the repa- age people to snitch on each other,’ crowave ovens (-16%), washing ma- triation of refugees will boost the num- says Minister Dewael to De Morgen. chines (-5.1%), colour TVs (-25.5%) or ber of expulsions. In 2005, around ‘I’m simply asking for the law to be ap- printers (-29%) have fallen signifi- 12,000 asylum-seekers returned to plied. Anyone living illegally in Bel- cantly in price. The same is true, albeit their home country; about the same as gium is exposing themselves to a crim- to a lesser degree, of clothing. This is in 2004. inal offence. Article 77 of the Aliens cheaper, or only fractionally more ex- Home Affairs also wants to introduce Act states that anyone giving help to pensive. A ladies’ dress costs 3% less, a the electronic identity card which a illegal immigrants is also guilty of a ladies’ coat 1% less, a leather jacket European directive makes compulsory possible criminal offence. It is not up 5% less, while an off-the-peg suit costs for all Foreigners (882,000) living in Bel- to the minister but the Public Prosecu- 1% more and a men’s shirt 11% more. gium and even for asylum-seekers by tor to decide whether or not people are In any event the price increase is way 2008. Checks could determine at what prosecuted for this. The law also pro- below the inflation level of 15.5%, ac- stage the asylum application is. Over vides for exceptions on humanitarian cording to ING Bank’s survey. ING at- the weekend a discussion also ensued grounds. First aid for people in need, tributes the drop in the price of cloth- between the Minister on the one side with or without papers, is not a crime.’ ing to the mounting competition from and certain refugee organisations and However, Dewael is attacking abuses China and other Asian countries. the Groen! party on the other on the of the law. ‘I cannot accept that people punishability of people who shelter ille- sometimes have to wait up to six years According to ING economist Ivan gal immigrants. On this point the Min- for a verdict as to whether or not they Vande Cloot in De Morgen (10 Janu- ister was forced to revise his tough are to be expelled. In such cases I ary), the price rises for daily products stance. Initially he stated in an inter- would regularise immediately on a per- explain why consumers are getting the view in Gazet van Antwerpen that peo- sonal level. Otherwise it's up to people impression that life has become much ple who knew of someone who was who systematically evade the law. more expensive. The large sums for sheltering illegal immigrants had a Then I'd deal with people who after household goods or clothing are paid duty to report it, but by Sunday 8 Janu- eighteen months receive an expulsion out much less frequently. ary had changed his tune. Only officials order and go underground, or know- have such a duty, the Minister correct- ingly sail around the law, for example ed himself. Home-owners who take by spreading the members of a family advantage of illegal immigrants by across the whole country. If such peo- demanding high rents for poor accom- ple are hoping that they can be regu- modation can be punished. It was in no larised after five years, they will come way the intention to encourage people away empty-handed. You cannot de- to snitch on each other, explained the rive any rights from crime.’ Minister in De Morgen (FF). www.ibz.fgov.be/ www.groen.be

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focus on FLANDERS • 7 January -13 January 2006 • Number 2 SOCIAL POLICY 5

EMPLOYMENT It has not yet met with much success. The Flemish Minister Frank Vanden- Van Velthoven wants broucke is working on extending and improving its instruments. That is quotas for recruitment of good. But it will probably only work if the commitments are brought closer to immigrants the shop floor: trade unions and employers must enter into agreements While unemployment fell in Flanders last year, it is still rising among for- not only at Flemish level, but for each eigners area of industry and each firm. Collec- tive Labour Agreements. It is up to the unions now to press for this. They must fulfil their emancipatory role. Federal Employment Minister Peter recruitment of foreigners. They are dri- But the knots are not only in the world Van Velthoven (SP.A) no longer wants ven by figures that do not significantly of work, they are also in education. At to preclude quotas for the recruitment improve things. They get a kick out of the end of basic education, young Bel- of foreigners. If other measures are of no measures that create an energetic gians are already twice as advanced use next year, the government will sim- impression. Quotas, however, are guar- academically as young foreigners. In ply have to force employers to recruit a anteed to get bogged down in a bureau- secondary education the waterfall sys- fixed percentage of foreigners (or Bel- cratic swamp. tem only widens the gap. Education gians of foreign origin), says Van The fact that some of our business lead- must tackle this, just as passionately as Velthoven in an interview in Het ers are refusing to take on foreigners as when fifty years ago it tackled the Belang van Limburg. workers is, however, a time-bomb. democratisation of education for work- Unemployment among foreigners is a There can be no sympathy for it. These ing class children. It must do that with time-bomb, claims the Minister. While are frightened and above all stupid the same partners: with trade unions unemployment fell in Flanders last employers. Systematically rejecting and large social organisations. year, it is still rising among foreigners. talent that could create wealth and And with the self-help organisations of Both Groen! and Spirit defend the idea. profit is the last thing a clever employer the immigrants who, just like the work- The VLD is strongly opposed to it. does. ers' movement did fifty years ago, must According to the Liberals, such obliga- But a government that points a pedan- convince and mobilise parents and tions will chase businesses away. tic finger is not much better. The children to make full use of education. Employers are also against the idea. promise of political parties to do away They want to recruit on the basis of with the nationality requirement for www.petervanvelthoven.be quality. However, Van Velthoven does permanent government jobs is dead not attach much credence to that argu- and buried. ment. He claims figures show that While quotas are threatened federally, quality is not always decisive and that Flemish policy is continuing to con- foreign applicants regularly fall by the vince and inspire. In 2002 the Flemish wayside. In December 2002 employers umbrella employers' organisations and concluded an agreement with trade trade unions signed a platform text in unions in which they committed them- which they agreed to recruit more for- selves to supporting the ‘proportional eigners (later extended to groups such participation of all sections of the popu- as the handicapped and the over-50s). lation’. This will involve the use of Diversity must become the norm, is the diversity consultants whose job is to motto. ■ convince employers to take on foreign- ers. Flemish Employment Minister Vandenbroucke (SP.A) is currently holding talks with employers’ organisa- EMPLOYMENT AND UNEMPLOYMENT OF IMMIGRANT POPULATION tions and trade unions to extend the

diversity action plan. LEVEL OF EMPLOYMENT AS % OF LEVEL OF UNEMPLOYMENT AS % OF De Standaard is calling for the govern- WORKING POPULATION WORKING POPULATION ment to take further steps in this direc- tion (FF). (SECOND QUARTER ) 2002 2004 2005 2002 2004 2005

Opinion BELGIUM (TOTAL) 59.7 60.5 61.0 6.9 7.4 8.1 Natives 60.7 61.4 61.9 6.1 6.7 7.4 GUY TEGENBOS • DE STANDAARD • Immigrants from eu15 58.7 56.7 59.8 10.3 10.8 9.0 10 JANUARY Immigrants outside eu 30.7 36.8 37.0 33.5 29.3 31.5

Parents who constantly threaten pun- EU15 (TOTAL) 64.2 64.5 65.0 7.7 8.4 8.3 ishments but never actually apply Natives 66.4 66.3 67.0 7.1 8.0 7.9 them are poor parents. That is no differ- Immigrants from eu15 67.3 66.8 67.2 7.0 8.0 8.7 ent for politicians who repeatedly Immigrants outside eu15 52.6 53.8 55.6 15.8 17.5 17.3 threaten businesses with quotas for the source: tijd graphics focus on FLANDERS • 7 January -13 January 2006 • Number 2 6 BUDGET POLICY AND ECONOMY

FEDERAL BUDGET STOCK EXCHANGE The federal budget is Belgacom achieves 91% of Telindus balanced, but debt shares reduction is slowing down FF EDITOR

Belgacom's bid for network construc- On 5 January Federal Budget Minister slightly. According to the website of tor Telindus has been successful. The Freya Vanden Bossche (SP.A) received a the Federal Debt Agency, at the end of telecoms operator managed to acquire bouquet of flowers from Finance Minis- November 2005 the national debt was 90.85% of the shares. That is way ter Didier Reynders (MR). This was 279 billion euros. The delay in reduc- above the threshold of 75% which Bel- because Vanden Bossche was able to ing this debt is because in 2005 the gacom had imposed on itself. The present a balanced budget for the sixth government took over the NMBS’s Telindus shareholders offered 32.53 time in a row. According to Reynders debts, a sum of 7.4 billion euros, in one million shares at 16.6 euros. The take- and Vanden Bossche, a comparison fell swoop. That is around 2.5% of GDP. over has therefore already cost Belga- with other European Member States The government expects debts to fall com 540 million euros. speaks volumes. The average budget further to below 80% in 2009. In say- And yet Belgacom has not reached the deficit in the eurozone is 2.9%, and ing this, however, it has systematically threshold of 90% which forces the bid- only Spain and Finland did better than relaxed its own targets of several years ding to be re-opened. After all, in this Belgium. That balance was achieved ago. Originally it was Verhofstadt's situation the law assumes the total despite the slowdown in the growth of ambition to bring debts down to 60% number of securities. As well as the the economy. When putting together by 2010, later 2013. That would help shares this also includes the warrants. the 2005 budget Vanden Bossche's pre- cope with the ageing population: the These are held by Telindus staff and decessor Johan Vande Lanotte had still less money has to go towards paying most have not been sold. This means assumed GDP growth of 2.5%. By the off loans, the more can go towards Belgacom has only acquired 84.3% of end of 2005 that proved to be only 1.4%. healthcare and pensions. the total number of securities. Never- Vanden Bossche therefore had to quick- In recent years most countries in the theless the company announced a new ly find 1.5 billion euros or 0.5% of GDP. eurozone have recorded budget deficits and unconditional bid for the remain- She raked this in by taking over the pen- and seen their debts rise. Last year the ing Telindus securities. Belgacom sion funds of the NMBS (Railways) and level of debt in the eurozone rose from wants to acquire 95% and then force Antwerp Port Authority, selling off 70.8 to 71.7%. However, our histori- the remaining shareholders to get out, government buildings and selling on cally high level of debt fell. Thanks to claims De Tijd (12 January). This is be- tax arrears to financial institutions. All these two movements Belgium is cause the telecoms operator wants to together the one-off interventions slowly but surely approaching the Eu- take Telindus off the stock market. amounted to 0.4% of GNP. The opposi- ropean average. tion CD&V disputes that figure. It says pointed out www.belgacom.be that the government's one-off interven- that from 2007 budgetary surpluses www.telindus.be tions came to 1.5% of GDP and that will have to be collected. These will their total has risen to 11 billion euros then be paid into the Silver Fund. since 2003. Future generations will The government may only take money have to foot the bill, claims the CD&V. out of the Silver Fund (to help pay for The balanced budget is largely due to a pensions) if our debt is less than GDP. single expense item which was dramat- ically reduced: healthcare. Minister www.debtagency.be Demotte succeeded in reducing its www.begroting.be growth in expenditure, which for three ■ ■ years had been more than 8%, to 3.7%. And finally the Federal Government can also thank the regions - in particu- lar Flanders. As agreed earlier this year, they set aside a surplus which could be counted in the federal budget. What is EVOLUTION OF FEDERAL BUDGET striking is that despite such outstand- ing budget figures the level of debt hard- ly fell at all. But there is a reason for IN % OF GROSS DOMESTIC PRODUCT 2000 2001 2002 2003 2004 2005 that (FF). primary balance 6.7 7.1 5.7 5.4 4.8 4.3 interest charges 6.6 6.5 5.8 5.4 4.8 4.3 DE STANDAARD • 6 JANUARY budget result 0.1 0.6 0.0 0.1 0.0 0.0 national debt 107.7 106.3 103.2 98.5 94.7 94.3 Last year the drop in the level of debt growth rate of GDP 3.9 1.0 1.5 0.9 2.6 1.4 was minimal: from 94.7% of GDP in 2004 to 94.3% in 2005. In absolute terms, the national debt even rose source: tijd graphics

focus on FLANDERS • 7 January -13 January 2006 • Number 2 MOBILITY AND MEDIA 7

MOBILITY RADIO AND TELEVISION Public transport VRT-boss Tony Mary fuels breaks records new media war

FF EDITOR n 11 January the Managing Direc- BART HAECK • DE TIJD • 13 JANUARY Otor of the VRT, Tony Mary, came Over the past year both the Belgian rail- under heavy fire in the Flemish Parlia- Of the majority parties, the CD&V is ways (NMBS) and the Flemish tram and ment. This was in response to his New making the most fuss over Mary's bus transport company De Lijn carried Year's address, in which he lashed out comments, it emerged in the current a record number of passengers. For De at the commercial competition. Mary affairs debate in the Flemish Parlia- Lijn the number of passengers was 449 predicted that in the future the Flemish ment. Around midday some Christian million. That is more than double the Media Company (Vlaamse Media Democrats were still toying with the number in 1999. A number of drastic Maatschappij, VMMa), which is home idea of tabling a motion calling for measures are responsible for this spec- to VTM and Kanaal 2, would not be able Mary’s resignation. This did not hap- tacular rise. Travel for the over-65s, for to escape a sale. He reproached De Pers- pen, although Eric Van Rompuy example, is free, and more and more at- groep (publisher of De Morgen and Het (CD&V) did say in the heat of his argu- tractive subscription offers are being in- Laatste Nieuws) and (publish- ment that the CD&V’s parliamentary troduced, so that now around three- er of Knack and Trends), each of which party had a major problem with Mary’s quarters of De Lijn passengers have a holds half the shares in the VMMa, for performance. He spoke of a lack of subscription. Towns such as Hasselt blackmailing Flemish society and for confidence and called for ‘a red card’. (Steve Stevaert’s home town) and Lier even using their own newspapers and He did not want to address the ques- even made travelling with De Lijn en- magazines to do so. Of the majority par- tion of whether he was referring to tirely free of charge. In Lier this in- ties, the CD&V made most fuss over Mary's resignation. creased the number of users fourfold. the comments. Eric Van Rompuy called The Socialists and Liberals were rather But according to De Standaard (7 Janu- for Mary to be shown a ‘red card’. Media more charitable. VLD Parliamentary ary), there is a flip-side to the political Minister Bourgeois (N-VA, cartel part- Party Leader Patricia Ceysens did not choice of free and cheap public trans- ner of the CD&V) also condemned even mention the New Year’s address, port. De Lijn’s own revenue covers only Mary’s comments. The cause of the but simply called for calm. Dany Van- one fifth of total expenditure. In 2005 growing tension - some papers are denbossche (SP.A) said it was ‘inappro- the Flemish contribution to De Lijn already talking of a new media war - is priate’ for Mary to talk of blackmail was 621 million euros (+7%), while ex- the new five-year management agree- and insinuate that VTM was for sale. tra income only rose by 3.05%. ment between the VRT and the Flem- The SP.A member also said it was ‘not The number of passengers who made ish Government, for which negotia- done’ to call the independence of edi- use of the Belgian railways network tions are due to begin shortly. Above all tors into question. Nonetheless it rose to 172 million. That is a 23% in- Mary wants the commercial VMMa - would be excessive to sack Mary on crease on 2000. The aim was to in- not like with the previous management that basis, concluded Vandenbossche. crease the number of passengers by a agreement - to try and influence the Media Minister Bourgeois also feels quarter by the end of 2006. The NMBS negotiations via lobbying. For VMMa very strongly about the incident. ‘This also has a number of attractive fares. boss Christian Van Thillo the increas- is not the casual chattering of a civil 120,000 commuters travel for free, ing allocation for the VRT is nothing servant. It is a prepared speech by the while 1,114 companies have a third- more than distortion of competition. manager of a Flemish public enter- party payer contract with the NMBS. The other commercial television pro- prise,’ he said. With such contracts the employer pays ducer, SBS - owner of VT4 and VijfTV - Bourgeois warned the players on the 80% of the subscription price. joined him. In a forum in De Morgen Flemish television market: ‘It is not earlier this week. SBS boss Patrick the private broadcasters that will write www.delijn.be Tillieux suggested taking over the VRT the management agreement,’ he said. www.nmbs.be radio station Donna (FF). ‘But nor will I allow the VRT to hold discussions in public.’ number of passengers of Public Transport More restraint 500 de lijn 449.0 In a meeting with Tony Mary, Media 413.9 nmbs Minister Geert Bourgeois (N-VA) and 400 362.2 Minister-President 318.4 (CD&V) advised the VRT boss to show 300 265.0 more restraint when making com- 223.2 240.4 ments on the Flemish media land- 200 165.0 172.0 scape. During the talks on the new 146.5 150.8 154.9 134.8 139.9 management contract between the Flemish Government and the VRT 100 Mary will have to refrain from making public comments. 0 1999 2000 2001 2002 2003 2004 2005 ■ source: tijd graphics focus on FLANDERS • 7 January -13 January 2006 • Number 2 8 CULTURE

• 20 January: Orchestra of the Age of • 25 January: Paul O’Dette (lute) with Enlightenment and Capella Amsterdam Dowland and his contemporaries, Diary conducted by Richard Leonhardt with Protestant Chapel, Brussels; info: Henry Purcell; De Singel, Antwerp; info: www.bozar.be 02 507 82 00 www.desingel.be • 25 January: Deep Purple, Vorst Nationaal, • 21 January: Neujahr in Wien, Symphonic Brussels; info: www.vorstnationaal.be MUSIC, DANCE, THEATRE Orchestra of Flanders, conducted by • 29 January: Foo Fighters, Vorst Nationaal, Etienne Siebens with Rihm, Brahms and Brussels; info: www.vorstnationaal.be • 12 to 19 January: Exquisite Pain by Forced Schumann, De Bijloke, ; info: Entertainment, Kaaitheaterstudios, Brus- www.bijloke.be sels; info: www.kaaitheater.be • 21 January: African Divas (South EXPO • 17 January: Alban Gerhardt, Steven Africa/Nigeria), Zuiderpershuis, Antwerp; Osborne, recital with Shostakovich and info: www.zuiderpershuis.be • Until 2008: Art at the Frontline 1914- Schnittke, Royal Brussels Conservatory; • 22 January: Ekaterina Metchetina piano 1918, Royal Army and Military History info: www.bozar.be with Nikolai Roslavets, Dmitry Museum, Brussels; • 18 January: Hugo von Hoffmansthal, Kabalevsky, Arthur Lourié and Tikhon info: 02 737 78 33 www.klm-mra.be music and poetry, in German, Flagey, Brus- Khrennikov, Bozar, Brussels; info: • Until 9 January: Panamarenko, retrospec- sels; info: www.bozar.be; www.flagey.be www.bozar.be 02 507 82 00 tive, KMSK, Brussels; • 18 to 21 January: Charlotte Vanden Eynde • 22 January: Orquesta Tanguedia, AB, Brus- info: 02-508.32.11. with Kwaad Bloed (performance) De Singel, sels; info: www.abconcerts.be 02/548.24.24 www.fine-arts-museum.be Antwerp; info: www.singel.be - • 22 and 24 January: Rota, Battistelli, • Until 22 January: Avant-garde from 03/248.28.28 Stravinsky, Orchestra of the Flemish Russia 1900-1935, exhibition, Bozar, • 18 January: Osama Abdurasol & ensem- Opera, Opera House, Antwerp and Bijloke, Brussels; info: www.bozar.be ble (Irak/Syria/Morocco/The Netherlands); Ghent; info: www.vlaamseopera.be www.europalia.be 02/507.85.95 Zuiderpershuis, Antwerp; info: • 23 January: Felicity Lott & Ann Murray • Until 22 January: From Tsar to Emperor: www.zuiderpershuis.be with Brahms and Schumann, Flanders 300 objects that illustrate the period of • 19 and 20 January: Anima Eterna, con- Opera, Ghent; info: www.vlaamseopera.be Russian history from Ivan the Terrible to ducted by Jos Van Immerseel with piano • 23 January: Joshua Bell, violin and Freder- Catherine the Great (1547-1796), Bozar, concertos by WA Mozart, Royal Brussels ic Chiu, piano with WA Mozart, Brussels; info: www.bozar.be Conservatory (info: www.bozar.be) and De Ludwig van Beethoven, Bela Bartok, Sergey www.europalia.be 02/507.85.95 Bijloke, Ghent; info: www.bijloke.be Prokofiev and Camille Saint-Saëns, Bozar, • Until 30 April: Pain, exhibition, Museum • 19 January: Vocalconsort Berlin, Brussels; info: www.bozar.be 02 507 82 00 Ghuislain, Ghent; Akademie für Alte Musik Berlin, Dirigent: • 23 January: Musikfabrik, Trio Mediaevel www.museumghuislain.be Ralf Popken with German Baroque music with composition Shelter by Michael Gor- • Until 26 February: The Trans-Siberian by JS Bach and Heinrich Schütz; De Bijloke, don, David Lang and Julia Wolfe(bang on a Express: fascinating facts about the route to Ghent; info: www.bijloke.be can); De Singel, Antwerp; info: www.desin- Vladivostock, KMSKG, Cinquantenaire, • 18 to 28 January: The moment we knew gel.be Brussels; info: 02/742.72.11 nothing about each other by Peter Handke, • 24 January: Scottish Chamber Orchestra • Until 5 February: Europalia Russia: director: Ruud Gielen, Play without words; with Piotr Anderszewski, piano and Katharina Prospekt, The Russians by the Kaaitheater Brussels; info: Alexander Janiczek leader with Sergey Fashion designer duo A.F Vandervorst, www.kaaitheater.be 02/201.59.59 Prokofiev and Wolfgang Amadeus Mozart Fashion Museum, Antwerp www.momu.be • 18 and 20 January: Recital Matthias Bozar, Brussels; info: www.bozar.be 02 507 • Until 29 January: Exhibition: Toys in girls’ Klink, Elzenveld Antwerp and Flanders 82 00 hands, Toy museum, Mechelen, Opera, Ghent; info: www.vlaamseopera.be • 24 January: Wannes Vande Velde; info: 015/55.70.75 • 19 and 21 January: Elisso Wirssaladze AB, Brussels; info: www.abconcerts.be www.speelgoedmuseum.be (piano) with Chopin, Handelsbeurs, Ghent 02/548.24.24 Until 5 February: The Blue Rose – and De Singel, Antwerp; info: www.han- • 24 January: Cosi Fan Tutte by WA Mozart, Symbolism in Russia, Museum of Elsene; delsbeurs.be and www.desingel.be De Munt, Brussels; info: www.demunt.be info: 02/515.64.22 03/248.28.28 • 24 and 25 January: Roland & Yunasi (Bel- • SMAK exhibitions: Until 8 January: Sergej • 19 January: Jazz on Thursday with David gium/Kenya), Handelsbeurs, Ghent and Bratkov and Sven ‘t Jolle. Until 15 January: El-Malek & Pierre De Bethmann, Flagey, Zuiderpershuis, Antwerp; info: Giovanni Anselmo, Carsten Nicolaï and Brussels; info: www.flagey.be www.handelsbeurs.be and Rindfleisch/Rapedius, SMAK, Ghent, • 19 January: The New Helsinki Quartet www.zuiderpershuis.be www.smak.be (0)9 221 17 03 with Haydn, Shostakovich and Schubert; • 25 January: Silje Nergaard (Norway), jazz, • 17 December to 26 February: Intertidal, De Singel, Antwerp; info: www.desingel.be Handelsbeurs, Ghent; info: www.handels- Vancouver Art and Artists, exhibition, • 18 to 20 January: Desh by Rosas (dance), beurs.be MUHKA, Antwerp; info: www.muhka.be De Vooruit, Ghent; info: www.vooruit.be • 25 January: Electric Barbarians, 09/267.28.28 De Vooruit, Ghent; info: www.vooruit.be 09/267.28.28

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focus on FLANDERS • 7 January -13 January 2006 • Number 2