Navigating Budget Negotiations in the Brussels-Capital Region: Challenges, Tensions, and Proposals

2023-10-13 18:19:00

Preparing the budget is not a walk in the park in the Brussels-Capital Region. “Achieving the objective is more complicated than it has ever been under these governments, given the proximity of the elections but above all, given the budget figures,” adds a member of the executive. “The objective remains to reach an agreement this weekend.”

The executive led by Rudi Vervoort (PS) has until Sunday to send a first outline of its budget to the European Union.

The discussions got off to a bad start last Thursday when Sven Gatz (Open VLD), Brussels Minister of the Budget, left the table during the meeting, unhappy with the modesty of the budgetary efforts to which his fellow ministers were agreeing. A blow of pressure, according to some.

Tensions in the Brussels government: Sven Gatz leaves the budget negotiation table

The Flemish liberal has put his work back into practice to bring a new proposal to his colleagues.

The Brussels government met again this Thursday to analyze Sven Gatz’s note. It is considered completely “undrinkable” by the left-wing parties.

In this document sent to other members of the government, Sven Gatz recommends an overall budgetary effort of more than 360 million euros. And even more than 600 million in total when adding the reforms in revenue and expenditure, which include the end of the substantial provisions linked to the reception of Ukrainian refugees and the energy crisis.

The structural effort requested includes a 3% reduction in personnel costs for all jobs in the Brussels Region, for an amount of 50 million euros. The budget minister also recommends big savings in operating costs for all administrations. At the Brussels Regional Public Service (SPRB), this would mean the end of new appointments, even to renew vacant positions.

It is also proposed to cut back on investments, by postponing certain investments in mobility and social housing. However, the question of the Metro North will probably not be resolved under this government.

Sven Gatz also proposes, and this is undoubtedly the point that annoys the most on the left, a reduction of almost 80 million euros in optional subsidies.

These subsidies, which are not regulated by a specific law, are usually allocated to non-profit organizations or certain municipalities.

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“Among these amounts, there are also a lot of structural subsidies. If you eliminate them indiscriminately, it will amount to laying off staff overnight on January 1,” we point out, on the left.

“Reducing them would be a good thing to limit the prince’s actions and prevent certain people from taking advantage of their boyfriends during the election period,” retorts another political source.

The 360 ​​million euros effort recommended by Sven Gatz is therefore considered highly excessive by the socialists, Ecolo and Groen, who see it as a basic negotiating position, voluntarily demanding, to obtain the most possible, in the end. And position yourself electorally as the man who will clean up the finances of Brussels.

The Minister of Employment Bernard Clerfayt (Défi), for his part, stands alongside the Open VLD as a defender of budgetary orthodoxy. Except when it concerns its materials, some whisper.

And yet, this sum is less than the sum of 584 million euros that the monitoring committee had deemed necessary to return to budgetary balance, excluding strategic investments, from 2024.

The Region’s debt, in fact, has increased more than expected in recent years. Downside, if all parties agree to make linear savings, no minister wants the savings to be made at the expense of his own matters.

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