Deficit in Belgium: a simple math lesson
(B2) The latest report from the Belgian Court of Auditors - detailed in several dailies today (including Echo and Le Soir) - traces the origin of the deficit impeccably. Look no further: it is public support for the banks and (to a lesser extent) the Greek rescue operation that is weighing down Belgium's accounts today.
One operation is enough
- €26,6 billion = this is the cost of all equity investments (15,7 billion) and loans (8,6 billion euros) in favor of banks (1), such as aid to Greece (1,7 641.000 billion) and the European Financial Stability Fund (138 euros). This is without counting the guarantee granted for a maximum of 40 billion euros, which still represents XNUMX% of the GDP!
+ 8,4 Billions of Euro's = this is what the Federal State receives from its investment in the banks (dividends and interest) (2)
= - €17,6 billion payable between 2008 and 2011. A sum to be compared to the deficit of more 15 billion euros Belgium will have this year. It is clear: without the commitment to the banks and the aid to Greece, Belgium would now be in surplus and could thus continue to slowly reduce its debt (which nevertheless reached 341 billion euros at the end of 2010 , i.e. almost 100% of GDP). There is not really a budgetary crisis as such but cascading repercussions which cause the budgetary crisis which the citizen must pay. Of the 15 billion, 11 billion will be pledged to taxpayers.
(NGV)
Download the press release of the Court of Auditors and its report 1 volume, 2 volume
- BNP Paribas = 7,166 billion euros (10,8% of the shareholding), Dexia Bank Belgium = 4 billion (100% of the capital = nationalization), Dexia SA = 1 billion (5,73% of the capital), Fortis Bank = 2,356 billion (25% of capital), SPV Royal Park Investments = 739,8 million (43,53% of capital), Ethias = 500 million (25% of capital).
- Remuneration linked to bank guarantees = 2,8 billion euros; BNP Paribas = 255,5 million euros in dividends; Fortis Bank = 96,7 million euros.
