Debt of Flemish municipalities rises to 8.6 billion euros
The combined debts of Flemish municipalities and Public Centres for Social Welfare (PCSWs) have climbed to 8.6 billion euros. That amounts to an average of 1,079 euros per resident, Het Nieuwsblad writes on Saturday, citing the latest figures in the Flemish government’s BBC Analysis tool.
While 190 municipalities (66.7 per cent) succeeded in reducing their debts, the remaining third sank further into the red. In absolute terms, Ghent tops the list with just under one billion euros in outstanding debt. Mechelen and Leuven follow at a distance, with 305 million euros and 254.7 million euros respectively.
When adjusted for population size, the coastal towns of Middelkerke (4,463 euros per inhabitant) and Blankenberge (3,826 euros) have the highest debts. They are followed by Ghent (3,700 euros), Ostend (3,445 euros) and Niel (3,440 euros). The lowest per-inhabitant debts are found in Hemiksem (44 euros), Wommelgem (28 euros) and Ardooie (27 euros).
No more budget discipline
Overall, municipal debt increased by 1.4 per cent. Without the Flemish government’s takeover of 273 million euros in debt from 13 newly merged municipalities last autumn, the increase would have been 4.6 per cent, the Flemish Association for Cities and Municipalities (VVSG) said.
According to public finance professor Herman Matthijs, municipalities have drifted away from strict budget discipline over the past 20 years. This has fuelled a sharp rise in personnel costs, particularly in urban areas. Many may be forced to follow Ghent’s lead, which recently announced it is cutting at least 350 jobs in order to reduce its debt.
#FlandersNewsService | The city hall with the belfry in Ghent. © BELGA PHOTO JAMES ARTHUR GEKIERE
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