Forcing to put Belfius on the stock market

The Prime Minister Charles Michel wants an agreement in the framework of the budget negotiations.

It is a Belgian political-financial soap opera worthy of the telenovelas South-American: the partial privatization of Belfius via a entry of its capital on the Stock Exchange, stumbles for months on the procrastination of the CD & V and the link with the Arco file .

According to our information, the Prime Minister Charles Michel is firmly decided to reach an agreement on this issue as part of the budget discussions that began this Friday. The position of the CD & V and its Deputy Prime Minister Kris Peeters is now described by several sources as " untenable " as it conditions the Belfius IPO to a settlement of the dispute Arco. " Peeters will be held responsible for the non-deleveraging of Belgium. This is a political suicide ," says a government source.

Clearly, alongside the traditional budgetary efforts, the European Commission wants the ratio of the Belgian debt to decrease : by carrying part of the public bank on the stock market, the State mechanically deleverages. If 30% of the bank – valued between 7 and 9 billion euros – are privatized, the state will harvest at least 2.1 billion euros according to estimates.

" It would be a strong signal to the European authorities ", completes this source. In 2017, the Belgian debt was pointing at 103.1% of GDP, according to Eurostat. Let us add that the Commission will be much more inclined to give the margin and the flexibility for the Investment Pact if it finds that Belgium is deleveraging elsewhere.

The idea is that the Prime Minister can register a declaration of principle on the Belfius IPO at the time of this budgetary conclave, and that the technical details are left to the management of the bank which will decide if the IPO must take place in October or April next. " It is fundamental for Belfius one says within the management. One can not take eternally hostage a bank which performs well and which must be deployed on the "

A provision of 400 million euros has been made by the bank to compensate Arco co-operators: it can be released in the event of a green light from the European authorities. By and large, the CD & V is now caught in the throat by all its partners in the federal coalition (MR, N-VA, Vld) who urge it to take the principle of the IPO. The European Commission, for its part, has not yet decided on the legality of the Belgian proposal to compensate Arco co-operators. " That is enough ton a minister. With or without agreement Arco, we will advance on B elfius. "