Flanders changes funding to encourage small municipalities to merge

The Flemish government is changing how it funds municipal mergers to ensure the smallest municipalities benefit, De Standaard reports. By 2029, it should be clear how many local authorities will merge as a result.

Municipalities merge mainly to make local government more efficient and financially sustainable. By merging, local authorities can pool staff, reduce duplication of services and improve performance in areas such as finance, IT, urban planning and legal support.

The previous framework was particularly beneficial for large municipalities. Antwerp received 50 million euros for its merger with Borsbeek in 2025, even though its population only increased by 2 per cent.

Now, large municipalities that absorb smaller neighbours will receive less money, while cooperation between smaller municipalities will be encouraged.

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Under the revised scheme, all merged municipalities will be given a lump sum of 1 million euros to cover transition costs, such as IT or personnel changes. At present, the financial benefits of merging are not immediately noticeable.

Fused municipalities will also receive a further transfer of debt to the region, of up to 500 euros per inhabitant. This represents an additional debt of 100 euros assumed by the region. The benefit decreases once municipalities exceed 40,000 inhabitants.

Flemish Interior minister Hilde Crevits of CD&V says merging remains voluntary. The Flemish government is providing 150 million euros to finance a new round of mergers but has set no targets for the number it hopes to see. 

In 2025, Beveren Waas became the largest municipality in Flanders through the merger of Beveren, Kruibeke and Zwijndrecht. It is home to nearly 87,000 people in an area of 200 square kilometres.

 

#FlandersNewsService | Kruibeke © PHOTO BELGIAN FREELANCE


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