Di Rupo considers VAT increase

A VAT increase from the current 21 percent to 22 percent is to be floated by the government, alongside reforms to the indexation system, L’Echo and De Tijd report today. The move would help seal the 2013 budget and could raise as much as €1 billion. At the moment, the government still has to find €3.7 billion to seal the budget for next year. Other measures involve spending cuts in areas such as overseas aid and cooperation, €420 million of which has been frozen since last month, according to the charity 11.11.11. The government claims the amount in question is “only €200 million”.