The financial arrangements are the cornerstone of any lasting federal organization of the state. A delicate balance has to be struck between financial responsibility, solidarity, and the constraints imposed by theeconomie and monetary union. On the average member states in existing federal countries rely for two thirds on autonomous sources of finance, and for one third on solidarity. In the Belgian devolution act of 1980 the financial provisions run counter to the financial orthodoxy for a cooperative federalism. Nevertheless, provided certain adjustments are made in financial techniques, in debtand credit financing, the financial arrangements of 1980 may serve as a second best solution towards further devolution.