BGM DigestBGM Digest — Week 13 (23-29 March 2026)
2026 Budget Approved: End of Twelve-Month Provisional Credits
The Brussels Parliament voted on the 2026 regional budget in plenary session on 27 March, ending 613 days of provisional twelve-month credits. The assembly approved the text with 53 votes in favour and 32 against. This deficit budget of 957 million EUR is part of a trajectory towards equilibrium by 2029, heavily relying on a controversial accounting mechanism (the "code 8").
At the same time, two signals reassured financial markets: Deutsche Bank granted a credit line of 250 million EUR to the Region (3 years), the first international bank since the start of the governmental crisis. Standard & Poor's confirmed the rating A with negative outlook. In total, the Region has secured 300 million EUR in new credit lines (Belfius: 50M€).
Accelerated Austerity: Quadruple Shock for Regional Bodies
The week saw four major austerity announcements converging, affecting regional economic actors:
- Hub.brussels must save 6 million EUR by 2029 (⅔ of the international budget). Minister Hublet confirmed the closure of 33 overseas offices from 50, including the emblematic Brussels Houses in Milan and Barcelona.
- Visit Brussels loses 5.7 million EUR by 2029. The 2026 Iris Festival, the flagship tourism event, is reduced to a single day (versus the traditional 3 days).
- Innoviris freezes all new R&D projects in 2026 (budget −20%). No new calls for proposals will be launched this year, impacting Brussels universities and innovative SMEs.
- Hotel VAT: increase from 6% to 12% on 1 March (federal decision) represents an additional cost of ~8.50 EUR per night on a 150 EUR stay.
These cuts are part of the regional deficit adjustment trajectory and raise concerns about the tourism sector (35,000 jobs at risk according to estimates).
LEZ: The Dramatic U-Turn on BIM Exceptions
On 27 March, Minister Dirk De Smedt (Anders) shocked his colleagues by announcing in Parliament the suspension of LEZ fines from 1 April. This decision, made during the policy speech, directly contradicted the position of Minister Persoons (Vooruit) announced 24 hours earlier.
Simultaneously, a fracture opened over BIM exceptions (zones with restricted circulation): Groen blocks the social exceptions system that would allow 30% of Brussel residents reduced-rate access, while PS and Vooruit demanded them. Minister Van den Brandt (Groen) denounced this reversal.
This clash represents the second major coalition fracture since its installation (day 43), deeper than the previous Bois de la Cambre conflict (day 37).
The LEZ framework must be reformed by January 2027, but legal uncertainty persists: the ordinance had not been voted at the deadline.
Metro 3 Commission: Cascade Hearings and Technical Impasses
The special Metro 3 Commission of Parliament continued its public hearings. On 24 March, Philippe Close, Mayor of Brussels City, gave detailed testimony, notably on management failures and structural delays in the project.
In parallel, a critical Court of Audit report highlighted incoherent processes, opaque management, and uncertain viability of the project. The SM-Toots consortium, heard on 12 March, revealed major technical defects: Palais de Midi had been evacuated too late for geotechnical surveys, the clay layer being deeper than expected, making jet grouting unsuitable.
For the missing link (Palais de Midi), engineers project 4 additional years of work, with a possible start only from 2027 onwards.
Housing: AIS Saint-Josse Audit and Fraud Suspicions
On 29 March, the expanded audit of the Saint-Josse Social Housing Agency (AIS) revealed suspicions of fraud in housing allocation. The file was forwarded to the Brussels Public Prosecutor's Office. Brussels Housing filed a civil suit and is cooperating with the investigation.
These revelations come in a context of structural fragility in the sector: 32% of homes for sale in Brussels are classified as energy-intensive (categories F/G), the worst ratio of the three regions. The abolition of Renolution led to its replacement with zero-interest loans, but these credit access mechanisms exclude households without documented repayment capacity.
Security: Military Deployment and Institutional Crisis
Since 23 March, 200 military personnel (after correction: approximately 100-200 in rotation, ~600 people in total) have been deployed in Brussels and Antwerp. Their mission covers surveillance of Jewish sites, support to railway police, and FIPA operations. The agreement between Ministers Quintin (MR, Interior) and Francken (N-VA, Defense) was reached, but Minister Verlinden (Justice) denounced the lack of consultation in the Council of Ministers at the time of the announcement.
In parallel, an attack occurred at the Anderlecht CPAS (Public Social Assistance Centre) local office on 25 March: a security guard and two police officers were assaulted. This incident occurs in a context of influx to CPASs caused by the second wave of federal unemployment exclusions (limited to 2 years of non-employment), exceeding government projections by 40-50%.
Cleanliness: Waste Bag Reform and Implementation Challenges
The Brussels Cleanliness reform was expanded this week: yellow bags become bi-weekly, while white bags will only be collected once a week in 10 municipalities. One hundred sorting spaces are being set up. The total budget reaches 315 million EUR, supplemented by 28 million EUR for Gare du Midi.
However, this reform poses major HR challenges: approximately 65 refuse collectors could be redeployed to other tasks, while the Region counts 250+ vacant positions in the sector. The risk of a one-third reduction in collection routes is mentioned, with implementation unable to begin before 2027.
A Brussels Cleanliness strike disrupted collections from 18 to 20 March.
Radar: Brussels Airspace Overflights and Cross-Border Impacts
The Brussels Airspace Overflights dossier was significantly expanded this week with 22 sources and 16 detailed metrics. Runway **01 recorded a +252% increase in night overflights. Wind thresholds remain a critical issue (only the Wathelet instruction is legally valid according to data).
The impact extends to neighbouring Flemish municipalities, bearing economic costs estimated at 50,000 EUR per week. Ultrafine particles extend up to 7 kilometres from the airport. The Brussels Government proposed an insulation fund for residents and establishment of a silent zone from 22:00 to 07:00, while alternatives (Liège, Cologne) remain underdeveloped.
This content was automatically translated. The original version is in French. Read the French version.
Source: Brussels Governance Monitor — independent civic monitoring of Brussels governance.