Minister Gatz: ‘Complete transparency in the financial management of the Brussels Region’

All available financial information has always been shared in full, both with the Brussels Parliament and with external partners involved in assessing the Region's financial position. At no point has a too favourable picture been painted of the budget or debt figures.

The authors of the articles suggest that the Region uses a specific methodology in order to make the total debt appear to be less than it is. In reality, in 2017, 2018, 2019, 2021 and 2022, using the Region's calculations, these figures showed the debt to be higher than according to the calculus of the National Bank, and we ARE talking about the exact same methodology that is now being questioned.

Furthermore, the Brussels government works with a multi-annual budget that is fully aligned with the recommendations of the High Council of Finance. The most recent budget, which was approved in parliament in December 2023, runs until 2027. From the outset, there has been clear and transparent communication about the savings needed to achieve the budgetary targets. A multi-annual budget is, by definition, a projection that includes effects yet to be realised, as is also customary at federal government level.

Finally, complete transparency has always been maintained in reporting to financial partners and the rating agency. Both parties are fully aware that the EIB and CEB lines are linked to specific projects. The Region had ample liquidity reserves at its disposal for each drawdown and never used the funds to cover liquidity shortfalls. Moreover, these funds were used gradually, which is evidence of good governance. This is confirmed by credit rating agency Standard & Poor's, which, like the other financial partners, is fully aware of the use of these credit lines. Since 2022, even before the first EIB line was set up, the rating agency has also confirmed that these lines are correctly included in the calculation of the liquidity.

The respective articles make a number of claims that are not consistent with the facts and paint an inaccurate picture of the Brussels-Capital Region and its administration.

Minister Gatz acknowledges that while the Brussels Region’s current debt position remains manageable it could come under pressure over the long term without decisive efforts to decrease spending. There is a risk of liquidity crisis if structural reforms and savings are not implemented in a timely manner.