Macroeconomic and fiscal impact of the risk capital allowance

The study, produced in response to a request made by the federal government, examines the economic impact of the risk capital allowance. More particularly, it assesses the extent to which the objectives of the law of 22 June 2005 introducing an allowance for risk capital in the Belgian corporation tax system have been achieved. The study gives a brief presentation of the measures introduced by this law. It analyses the influence of these measures on the financial structure of corporations, their effect on the Belgian coordination centres – whose beneficial tax regime will soon be abolished – and their macroeconomic impact particularly investment and employment. Their budgetary implications on the basis of both macroeconomic and microeconomic data is then examined.corporation tax in Belgium, tax allowance, risk capital, coordination centres

The Process of European Monetary Integration: A Comparison of the Belgian and Italian Approaches

This paper analyses and compares the roles which Belgium and Italy have played in the process of European monetary integration. It discusses Belgian and Italian attitudes towards European integration and EMU, exchange rate policies, key concepts of the Belgian and Italian EMU strategies and the concrete contributions made by Belgium and Italy. Overall, these two countries played an important and pace-setting role in the process of European monetary integration. They developed several creative and diplomatic proposals. Moreover, Belgian and Italian policy-makers often acted as "policy entrepreneurs" and proved to be skilful negotiators. The main difference is that Belgium has been a constant and consistent "pace-setter" in monetary matters, from the preparation of the Hague Summit to the elaboration of the EMS, the monetary chapter in the Single European Act and the realisation of EMU, whereas Italy was mainly active in the 1980s. This assessment of the Belgian and Italian contributions does not challenge the decisive impact of the Franco-German axis, but illustrates that EMU was a multilateral process. Furthermore, the paper shows how important it was for a country to achieve a sound economic performance, especially a stable exchange rate, in order to have influence on the European monetary scene