The country's constitution was revised on 14 July 1993 to create a unique federal state, based on three levels:
The federal government, based in Brussels.
The three language communities:
the Flemish (i.e., Dutch-speaking) Community;
the French (i.e., French-speaking) Community;
the German-speaking Community.
The three regions (which differ from the language communities with respect to the German-speaking community and the Brussels region):
the Flemish region;
the Walloon Region; and
the Brussels-Capital Region.
Conflicts between the bodies are resolved by the Court of Arbitration. The setup allows a compromise so distinctly different cultures can live together peacefully.
The Flemish Community absorbed the Flemish Region in 1980 to form the government of Flanders. The overlapping boundaries of the Regions and Communities have created two notable peculiarities: the territory of the Brussels-Capital Region is included in both Flemish and French Communities, and the territory of the German-speaking Community lies wholly within the Walloon Region. Flemish and Walloon regions are furthermore subdivided in administrative entities, the provinces.
At the highest level of this three-tiered setup is the federal government which manages foreign affairs, development aid, defence, military, police, economic management, social welfare, social security transport, energy, telecommunications, and scientific research, limited competencies in education and culture, and the supervision of taxation by regional authorities. The federal government controls more than 90 per cent of all taxation. The community governments are responsible for the promotion of language, culture and education in mostly schools, libraries and theatres. The third tier is the Regional governments, who manage mostly land and property based issues such as housing, transportation etc. For example, the building permit for a school building in Brussels belonging to the public school system would be regulated by the regional government of Brussels. However, the school as an institution would fall under the regulations of the Flemish government if the primary language of teaching is Dutch, but under the French Community government if the primary language is French.