Budget minister: Brussels has averted imminent shutdown
Brussels has averted an imminent shutdown, Budget minister Dirk De Smedt said in an interview with De Standaard and Le Soir.
De Smedt warned in November that a shutdown of public services in April next year could not be ruled out. His remarks provoked tensions in the parties negotiating the region’s government. Talks to form a government remain deadlocked, more than 550 days after the elections took place.
On Friday he told De Standaard and Le Soir that the immediate threat of a shutdown had been averted. However, a new government is no closer to being agreed.
“We have managed to save 350 million euros on the 2025 budget, which means we will end the year with a deficit of 1.24 billion instead of 1.6 billion,” he said. “That has given us 350 million euros in liquidity. What’s more, we are limiting the deficit in 2026 to 1 billion: another 600 million less than initially estimated. That brings the total to 950 million euros.”
Belfius recently agreed a new 50 million euro credit line when it extended its contract as the government’s home bank until the end of 2026. The additional credit line is intended to give Brussels the financial flexibility to meet its obligations while maintaining efforts to structurally improve public finances.
"558 days after the elections, we cannot continue to postpone the necessary reforms"
Brussels will also transfer a lower amount to various regional institutions, such as the fire brigade, Brussels Mobility and public transport operator STIB.
"At most, it is a haircut on their funding, which should not affect the people of Brussels: these institutions all have their own coffers with sufficient funds," De Smedt said.
"This provides a little more liquidity in the region's central pot, which means I can now say that the liquidity risk is actually limited today. And that is an important signal to the banks and credit rating agencies."
However, he added, "558 days after the elections, we cannot continue to postpone the necessary reforms."
Brussels Budget minister Dirk De Smedt © PHOTO BELPRESS
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