ABSTRACT
This chapter demonstrates how territorial questions and conflicts have played a role since the 1970s, the starting point of the state reform. It describes the reform process towards a federal state in the 1970s, 1980s, and 1990s and attempts to link fiscal policy making in each period to the changes implemented in each period. Belgium is a special case, as it has only become a federal country in 1993. The 1970s are marked by two important events that will introduce a regional dimension in fiscal policy-making and will lead the country in the direction of federalism. In 1980 the reform of the state was carried further by creating two regions the Flemish region and the Walloon region with their own legislative and executive bodies, as well as by the allocation of financial resources to the new entities. Belgium has attempted to avoid the difficulties in all tax systems with overlapping or joint taxes.
