Special Financing Act
The Special Financing Act of 16 January 1989 (French), defines with precision the mechanisms of financial transfers following transfers of competences between the Belgian Federal State and its federated entities (the Communities and Regions).
The Financing Act has been reviewed in 1993, 1999, 2001, and 2014, in order to refinance the federated entities, to modify the financing mechanism, to integrate the means of transferred competences, and to include a mechanism for the participation of federated entities in the stabilisation of public finances.
In application of the Special Finances Act, the amounts allocated to the French Community result from a calculation based on macroeconomic and demographic parameters, in particular:
- GDP growth,
- Inflation,
- The “pupil key”: French Community’s share of pupil, from 6 to 17 years old, regularly enrolled in school,
- The demographic adjustment coefficient: growth of the number of young people under 18 years old from 1988 and the year under review.
In 1992 and 2013, the so-called Saint-Quentin and Saint-Emilie agreements were concluded between the French Community, the Walloon Region (WR) and the French Community Commission (COCOF) so that those certain competences transferred from the federal State to the French Community are exercised by the WR and the COCOF.
The calculation of the means for the exercise by RW and COCOF of these competences are indicated in the following Decrees:
