Brussels Government Reaches Agreement on 2024 Budget: Significant Savings and Reforms

2023-10-16 10:43:15

After more than a week of conclave in several episodes, the Brussels government agreed on Sunday, at the end of the day, on a draft budget for 2024, we learned from several government sources. The Brussels Minister of the Environment Alain Maron (Ecolo) confirmed this on his X account. Questioned by Belga, the Brussels Minister of Finance and Budget, Sven Gatz announced that the agreement provided for some 200 million euros in savings.

It had been in the air since the summer: the minister confirmed that the draft budget provided for 3% savings on personnel costs. But that’s not all, the operating costs of the regional administration will be reduced by 5%, optional subsidies by 8% and investments by 10%. Still according to Sven Gatz, the deficit will be reduced by 150 million euros compared to 2023.

“The negotiation was tough”

Another feature of the project: certain provisions planned for 2023 will be withdrawn for 2024, in particular those linked to the impact of the energy crisis. There are also irreducible factors such as the predictable indexation of civil servants’ salaries and rising interest rates.

The Minister of Finance also underlined that a debt ceiling not to be exceeded had been taken into account so that it might demonstrate the seriousness of the management of the Region, in the eyes of external observers such as the rating agency. Standard&Poor. “The negotiation was tough, particularly on Saturday,” conceded Minister Gatz, “but we were able to find the composure necessary to succeed,” he commented.

In a press release, the office of the Brussels Minister of Finance stressed that “the return to budgetary balance, as envisaged in the multi-year trajectory, is therefore well and truly underway. This agreement lays the foundations for a new structural balance during the next legislature.” Without elaborating further on their content, the minister’s office also announced reforms “in several sectors”.

A reform for the Housing Fund

From good government sources, we learned on Sunday evening that the Stib would be more financially responsible and that it would now have greater autonomy to set its prices, which should allow it to be able to index them.

There is also talk of reforming neighborhood and renovation contracts, which would result, next year, in a postponement of new programs. Another reform is looming at the Housing Fund.

Finally, in terms of the labor market, the Minister of Employment, Bernard Clerfayt (DéFI) confirmed that there would be a reform of the Activa bonuses granted for older workers. According to him, discussions have already taken place on this subject with the social partners and in particular on the intention of reserving these bonuses for Brussels workers, which would make it possible to make savings without penalizing them.

Furthermore, some would have proposed a further increase in service vouchers in the Brussels Region, but there was no consensus on this subject, especially since these have already been increased, underlined Bernard Clerfayt.

​The political agreement will now be administratively translated and sent to parliament, where budgetary debates in the finance committee will begin in November. “The Region and the Joint Community Commission are giving themselves the means to pursue their environmental and social policies: mobility, housing, employment, health… Faced with a complicated budgetary situation following the crises, we are adopting a responsible budget”, commented for his part Minister-President Rudi Vervoort.

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