Flemish Parliament approves budget with 1.5bn euros in savings
After two days of intense debate, the Flemish Parliament approved the budget for next year in a plenary session that concluded just before 5:00 on Thursday. Majority and opposition parties clashed over the scale and impact of the proposed savings and reforms, particularly cuts to home care hours, reduced subsidies and a renewed emphasis on classroom time in education.
In total, the Flemish government plans to save around 1.5 billion euros next year. Of this, 350 million is expected to come from cutting subsidies and increasing government efficiency. 70 million euros had already been earmarked for subsidy reforms, with a further 140 million added, alongside 90 million in efficiency measures and 120 million in savings on the government apparatus.
Another 370 million euros will be saved by postponing previously planned policies. This includes the phased introduction of inheritance tax reforms and a scaled-back expansion of school meals, which will receive 13 million instead of the originally planned 46 million.
A further 463 million euros in savings will come from cancelling planned reforms and measures altogether. These include scrapping the “fridge coupon” for energy-efficient household appliances, restricting home renovation grants to the lowest-income groups, and cutting development cooperation and the school bonus. On the revenue side, the government is largely relying on an increase in the health insurance premiums.
MP pay and severance reforms
The Flemish Parliament itself will also cut 23 million euros from its own operations between 2026 and 2030. MPs’ salaries will not be indexed in the coming years, supplementary allowances will be reduced, and severance pay will be reformed.
“Members of Parliament don’t need inexplicable benefits. We simply shouldn’t do anything that can’t be justified,” speaker Freya Van den Bossche said previously. She added that the savings were intended to return parliament to its “fundamental missions”.
Under the reforms, severance pay for departing MPs will be reduced and its maximum duration halved to 12 months. The expense allowance will no longer be included in the calculation, saving 2,650 euros a month per severance payment. MPs’ salaries will also miss three or four indexations, amounting to a loss of 18,000 to 24,000 euros per MP.
"Members of Parliament don’t need inexplicable benefits. We simply shouldn’t do anything that can’t be justified"
Additional cuts include reductions in allowances for bureau members and committee chairs, a 13 per cent cut to the speaker’s own allowance, and the elimination of her chauffeur. Budgets for office equipment, internet costs, foreign travel and working visits will be reduced, while party subsidies and operating grants will remain frozen, saving 2.67 million euros.
Parliament will also pare down its internal operations. Fourteen staff members will not be replaced after retirement, pension bonuses will be reformed, consultancy costs reduced and savings made on events, travel and accommodation. Several planned building upgrades, including work on the domed hall, will not go ahead.
#FlandersNewsService | The Flemish Parliament in Brussels © BELGA PHOTO NICOLAS MAETERLINCK
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