Regional budget: targeting balance by 2029

Belfius remains the Region's banker until 2031, MTN/CP ceiling raised to EUR 15 billion (20 July 2026)

On 20 July 2026, Finance Minister Dirk De Smedt (Anders) announced, after government approval of the deal, that Belfius remains the Brussels Region's banker until 30 June 2031 (contract taking effect on 1 January 2027, renewable twice for one year by mutual agreement). The available credit line rises from EUR 50 million to EUR 250 million.

The maintenance of this line is conditional on compliance with the multi-year budgetary trajectory: the deficit must be kept to EUR 957 million this year before being progressively brought down to zero by 2029. The government also approved raising the ceiling of the debt securities programme (MTN/CP) to EUR 15 billion, additional borrowing capacity on the financial markets, distinct from standard bank credit lines.

Sources: BX1 (20 July 2026) ; RTBF (20 July 2026) ; BRUZZ (20 July 2026). Confidence: official (announcement by the Finance Minister following a government decision, confirmed by several independent sources including VRT NWS and BruxellesToday).

Summer agreement: income tax confirmed, consultant refused (16-17 July 2026)

Meeting at Val Duchesse on 16 July 2026 for its last session before the summer recess, the Brussels government confirmed the one-point cut in personal income tax, applicable from tax year 2028 (2027 income). Announced budgetary cost: EUR 58 million per year, of which around EUR 3 million borne by municipalities, a loss the government announced it would compensate. According to the Budget cabinet, the relief would amount to around EUR 147 per year for a single person without children on a net monthly salary of EUR 2,700, and around EUR 152 per year for a married couple with two children each earning EUR 2,400 net per month, figures lower than the initial estimate of ~EUR 268/year communicated at the time of the February coalition agreement.

A criticised and refused consultant hire. During the same period, several MPs criticised in plenary session the hiring, by the cabinet of the Minister of Finance and Budget, of an IT consultant billed at EUR 1,258 including VAT per day, for a total cost of EUR 818,320 over 2026-2029. The cabinet justified the choice as the cheapest option between two existing framework contracts, necessary to unify six IT institutions within the future support service Atlas.brussels. According to BX1 and BRUZZ, the Brussels government refused or postponed this hire in mid-July 2026, despite a favourable opinion from the Finance Inspectorate. This episode stands in direct tension with the commitment made in February 2026 to "reduce reliance on external consultants" (see below).

Sources: La Libre (16 July 2026), BX1 (16-17 July 2026), BRUZZ (17 July 2026). Confidence: unconfirmed (figures attributed to the Budget cabinet, no direct official statement available) for the income tax cut; official for the consultancy contract figures (confirmed by several media outlets).

First budget measures (February 2026)

From the start of work on 15 February, the government announced the first austerity measures, which contributed to bringing the deficit down to EUR 957 million in the 2026 budget:

• Extension of the hiring freeze (in effect since late 2023) in the regional civil service, for the full legislature (no layoffs)
• Reduction of external consultant use
• Cuts to discretionary subsidies — systematic review of all funding envelopes
• Target: deficit below EUR 1 billion in 2026, return to balanced budget by 2029

Coalition Agreement: Announced Commitments

The agreement concluded on 12 February 2026 between the seven parties of the new Brussels majority sets an ambitious budgetary framework:

• Return to a balanced budget by 2029 — trajectory of ~EUR 1.2 billion in savings, split 80% spending cuts and 20% new revenue
• No new taxes — no City Tax, no kilometre charge
• One-point reduction in regional personal income tax — estimated gain of ~EUR 268/year per Brussels worker
• Registration duties — exemption threshold raised from EUR 600,000 to EUR 800,000
• Administrative reform — merger of 25 regional structures into 4 entities (4 pillars) with a 20 to 30% reduction in operational costs
• Extension of the hiring freeze (in effect since late 2023) for the full legislature (no layoffs)
• Discretionary subsidies — systematic review of all funding envelopes

The government received the confidence vote of Parliament on 27 February 2026. The implementation of these commitments is now being realised through the 2026 budget, approved on 5 March and filed to Parliament on 6 March 2026.

Doubling of the Be Home premium (18 June 2026)

On 18 June 2026, the government gave first-reading approval to doubling the Be Home premium, a tax reduction for owners who occupy their own home, which will rise from 164 to 328 euros per year in 2027. Around 200,000 Brussels households benefit from it. The measure represents additional fiscal expenditure for the Region and falls within the budgetary trajectory to be monitored (target of a balanced budget by 2029). The text now goes for opinion to the Council of State and the social partners before a second reading. The housing dimension is detailed in the Housing card.

2026 Budget approved (5 March 2026)

The Dilliès government approved the 2026 budget in the council of ministers on 5 March 2026, ending the provisional twelfths regime that had been in effect for over a year. The budget was filed to the Brussels Parliament on 6 March.

Key figures:

• Deficit reduced to EUR 957 million (down from ~EUR 1.2 billion in 2025)
• Balance trajectory: the government targets a return to balanced budget by 2029
• The budget combines "fiscal discipline with targeted investments in essential government missions"

Parliamentary calendar:

• 6 March: budget filed to Parliament
• 16 March: Finance committee review begins (chair: Marc-Jean Ghyssels, PS, succeeding Ahmed Laaouej who became minister)
• 17-21 March: ministerial hearings in sector committees
• 23 March: Finance committee approves 2026 budget (majority vs opposition)
• Before 1 April: plenary debate and vote — deadline to avoid a new round of provisional twelfths

Municipal finances: EUR 1.718 billion in transferred charges (March 2026)

Alongside the regional budget, the 19 Brussels municipalities face their own financial shock. On 11 March 2026, Brulocalis quantified at EUR 1.718 billion (2025-2029) the additional charges imposed on municipalities by decisions of other levels of government. Only 26.7% would be compensated, leaving EUR 1.258 billion to be borne by local authorities.

The four main items are statutory staff pensions, police zone funding, the tax reform (EUR -17M/year in municipal revenue from 2029) and the influx to CPAS linked to the unemployment reform. This pressure adds to the already strained financial situation of the municipalities, described as a "slow financial agony" by La Libre in February 2026.

Sources: La Libre, BX1, DH, Trends-Tendances, Le Vif (11 March 2026).

Finance Committee: "catastrophic situation" (18 March 2026)

During his hearing before the Finance Committee of the Brussels Parliament on 18 March 2026, the minister-president described the regional financial situation as "catastrophic" and declared that the "gift-giving policy is over". He warned that "complicated and unpopular decisions" will be necessary to restore balance.

At the same time, he expressed strong support for the Kanal project, calling it "one of the finest ideas". On security, he clarified his role as coordination: "I am not a sheriff".

The government intends to avoid a return to provisional twelfths beyond 1 April — the plenary vote is scheduled before 1 April.

Source: DH / Brussels Parliament (18 March 2026).

Finance Committee: budget approved (23 March 2026)

The Finance Committee of the Brussels Parliament approved the regional 2026 budget on 23 March, with the majority voting against the opposition. The DPR commitment has been met: the deficit remains under the promised one billion.

Key figures for the 2026 budget:

• Revenue: EUR 6.622 billion
• Expenditure: EUR 7.613 billion
• Deficit: EUR 957 million (down from ~EUR 1.2 billion in 2025)

The deficit partly relies on the "code 8" mechanism: approximately 1 billion EUR in capital injections (Vivaqua, NEO, Kanal, SLRB) is excluded from the deficit calculation, recorded as equity participation. The Court of Accounts remains sceptical: the National Accounts Institute (ICN) must still validate the profitability of these injections for "code 8" to be accepted at European level. If the ICN refuses, the real deficit would exceed 1.9 billion EUR.

Bruxelles-Proprete receives a budget of EUR 315 million (+EUR 2 million compared to 2025), plus EUR 28 million dedicated to security and cleanliness at the Midi station.

The plenary vote is scheduled before 1 April 2026.

Sources: BRUZZ (23 March 2026), Brussels Parliament (23 March 2026).

Deutsche Bank EUR 250M credit line (27 March 2026)

On 27 March 2026, Budget Minister Dirk De Smedt (Anders) announced the signing of a EUR 250 million credit line with Deutsche Bank, for a term of 3 years with the possibility of extension. This is the first time an international bank has acted as a lender to the Brussels-Capital Region.

This line adds to the EUR 50 million already granted by Belfius, bringing total new credit lines to EUR 300 million. The minister stated: "The arrival of an international bank shows that confidence in Brussels is on the rise."

This return of confidence contrasts with the situation in late 2025, when Belfius and ING withdrew approximately EUR 1 billion in credit lines from the Region, creating a risk of a budgetary "shutdown".

Source: La Libre (27 March 2026).

Plenary vote: 2026 budget adopted (27 March 2026)

The Brussels Parliament adopted the 2026 regional budget on 27 March 2026 by a vote of 53 for and 32 against, following a week of intensive deliberations. This vote marks the definitive end of the provisional twelfths regime that had been in force for the Region since late 2024.

Key elements:

• 53/32: the full 7-party majority voted in favour; the opposition (Ecolo-Groen, PTB-PVDA, DéFI, N-VA) voted against
• Opposition criticism: the savings were described as "imprecise" and "hardly guaranteeing results" — the opposition criticised the lack of concrete implementation plans and reliance on the "code 8" mechanism
• COCOM remains on provisional twelfths: the budget for the Common Community Commission (family allowances, social assistance) has not yet been approved
• S&P confirms A / negative outlook rating: the rating agency maintains its June 2025 assessment — the negative outlook reflects the structural vulnerability of Brussels public finances

The budget approval, combined with the Deutsche Bank credit line (EUR 250M), marks a turning point in the Region's fiscal recovery, albeit under continued scrutiny by financial markets.

Sources: La Libre, RTBF (27 March 2026).

ING EUR 500M credit line (April 2026)

ING has granted the Brussels-Capital Region a EUR 500 million credit line for a term of 2 years, renewable. This is the second international bank — after Deutsche Bank — to lend to the Region since the 2025 credit crisis. Budget Minister Dirk De Smedt declared: "Brussels is a reliable partner again."

Total short-term treasury lines (April 2026):

This represents a remarkable turnaround: in late 2025, Belfius and ING had withdrawn approximately EUR 1 billion in credit lines from the Region, precipitating a risk of budgetary "shutdown". The return of ING — which had been one of the banks to withdraw — signals restored market confidence following the formation of the Dilliès government and the adoption of the 2026 budget.

Source: La Libre (April 2026).

Business support suspended for lack of credits (12 August 2026)

On 12 August 2026, several regional business support schemes are suspended for the remainder of the financial year: consultancy aid, economic transition aid, external training, recruitment aid and the coworking premium. The reason is strictly budgetary. Out of a 30 million euro annual envelope covering consultancy and investment aid, only 1.86 million euros remained on 13 July 2026, around 6 %, with a shortfall of 4.75 million euros already recorded on the investment side.

For this card, the episode illustrates an execution issue rather than an announced policy trade-off: the voted credits ran out mid-year and the counter closes, with twelve days' notice for businesses. The detail is on the Economy card.

Sources: BX1 (4 August 2026) ; BRUZZ (3 August 2026).

Property tax surcharges: nine municipalities raising them in 2026

Property tax is collected by the Region, but most of the bill comes from the surcharge points voted by each municipality. According to a survey published by BRUZZ on 5 August 2026, nine of the nineteen Brussels municipalities have raised these surcharges for the 2026 financial year.

Woluwe-Saint-Lambert is the only municipality cutting its surcharges. In Ganshoren, for an indexed cadastral income of 3,500 euros, the bill rises from 1,894 to 2,227 euros, around 333 euros more.

These increases come in the context of the 2026 municipal budgets already documented on this site, notably in Ixelles and Molenbeek-Saint-Jean. The Uccle figure matches what BGM recorded on 20 July from the municipal budget, which supports the survey without replacing it with a primary source.

Sources: BRUZZ (5 August 2026). Confidence: estimated (press survey; the municipal tax regulations are the primary source, to be consulted municipality by municipality).