Impact of VARIO on the Flemish Government Agreement and the EWI Policy Note 2024-2029

On September 30, 2024, the new Flemish Government 2024-2029 was sworn in. The Flemish Coalition Agreement and the EWI (Economics, Science and Innovation) Policy Note contain many elements from the VARIO Memorandum and the advisory reports of VARIO.

For instance, the new Minister-President Matthias Diependaele (N-VA) is also the minister responsible for the EWI policy domains. This meets VARIO's request to address innovation at the highest government level. Other VARIO recommendations that have found their way into the Coalition Agreement and Policy Note include:

• Taking further steps towards the public 1% norm (for R&D investment);
• Maintaining the partial exemption from the payment of payroll withholding tax for R&D (in consultation with the federal level);
• Safeguarding and strengthening excellent 'bottom-up' research at the FWO (Research Foundation - Flanders);
• Encouraging an experimental government by providing living labs and regulatory-free zones for pilot projects;
• Focus on transitions (mobility, energy, agriculture…) and Transformational Innovation Policy;
• Strengthening the Flemish position in Europe;
• Attention to an entrepreneur- and SME-friendly government, e.g., by simplifying and optimally deploying support instruments;
• Financing and supporting startups and scale-ups that contribute to the renewal of our economy;
• Ensuring more innovation talent by focusing on lifelong learning and strengthening the overall ambition of education;
• Keeping Flanders attractive for new investments and internationalizing our economy both domestically and abroad;
• …