A recent downgrade by Fitch and Standard & Poor’s comes as no surprise and is the logical result of years of disastrous budgetary mismanagement, according to Gilles Verstraeten of N-VA in Brussels, commenting on the Brussels credit rating cut.
Verstraeten criticised the government of Vervoort III for its excessive spending, which he claims the N-VA has warned about for five years. He argues that the downgrade is evidence of the government’s complete failure.
He highlights the region’s dire financial situation, with a projected deficit of €1.4 billion and an estimated debt level of 242% of this year’s revenue. He warns that the downgrade will likely increase interest costs on the debt, which already amounts to €432 million this year, further worsening the debt situation.
Verstraeten insists that steps must be taken immediately to restore order, claiming that each day without a government further erodes Brussels’ credibility and finances. He criticises certain parties for refusing to engage in talks, opting instead to flirt with the extreme left. He calls for a collaborative effort to improve Brussels’ governance for the future.
Flemish Minister for Brussels, Cieltje Van Achter, echoed concerns about the downgrade, stating it could have been avoided if the PS had not withdrawn from negotiations and had been willing to reform Brussels. She urges for the start of negotiations, calling for an end to baseless vetoes, and emphasises the need for reforms and sound budgetary policies as a matter of urgency.
Far-right Vlaams Belang (VB) claims the recent downgrade of Belgium's combined government credit rating, including the Brussels-Capital Region, by the renowned credit agencies Fitch and Standard & Poor's, underscores the unsustainable nature of the country's financial management, according to Wouter Vermeersch, a budget specialist from VB.
Vermeersch comments that both agencies acknowledge the extravagant spending by various Belgian authorities, with no improvement in budgetary discipline in sight. He notes that the debt level is rising, essential reforms are lacking, and financial stability is increasingly at risk.
Vlaams Belang views this as evidence that Belgium’s state structure is ineffective. The credit downgrade highlights the unsustainability of the Belgian model, Vermeersch concludes, stating that Flanders needs financial independence to shield itself from failing policies at both federal and regional levels.
