Regional budget: targeting balance by 2029

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.

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).