Brussels’ outgoing Budget Minister Sven Gatz (Open VLD) has dismissed claims made in De Tijd and The Brussels Times about the region’s budget and debt management as "baseless accusations".
Reports by the outlets allege the Brussels-Capital Region Government has used unconventional techniques for years to portray its deteriorating budget and debt figures in a more favourable light.
These methods are said to include presenting loans as liquid assets, counting future savings as guaranteed income, and concealing debt.
Minister Gatz disputes these allegations, stating that "some claims made in the articles do not align with the facts and present an incorrect image of the Brussels-Capital Region and its administration".
He argued the claims about debt calculations are unfounded.
Brussels region flag pictured outside the Brussels Parliament. Credit: Belga
"The articles suggest the region employs a specific methodology to understate its total debt," said Gatz.
"However, figures show that in 2017, 2018, 2019, 2021, and 2022, debt calculated by the region was actually higher than that reported by the National Bank, using the exact same methodology being questioned now."
Gatz also emphasised that the region’s multi-annual budget planning aligns with recommendations from the High Council of Finance.
The minister maintained that financial reporting to partners and rating agencies has been fully transparent.
"Both parties are fully aware that EIB and CEB credit lines are tied to specific projects. The region always had ample liquidity reserves and never used these funds to cover liquidity shortfalls," said Gatz.
"Furthermore, these resources were deployed gradually, reflecting sound management. This is confirmed by credit rating agency Standard & Poor’s and other financial partners."
However, Gatz acknowledged that the region’s current debt position could face long-term challenges. "Without timely structural reforms and spending cuts, there is a risk of a liquidity crisis," he warned.
CD&V call for inquiry
Opposition parties have Brussels MP Benjamin Dalle (CD&V) has reacted sharply to the new revelations.
According to Dalle, these are "falsified figures" that mislead parliament and the people of Brussels about the true extent of the budget crisis. He is calling for an urgent debate on the issue.
"What De Tijd reveals today confirms what we have suspected for some time," says Dalle.
"Not only is there an exploding deficit and a debt that has doubled in five years, but now it also appears that the government is deliberately working with polished figures," says the CD&V politician, referring to loans that are presented as liquid assets, future savings that are counted as certain income, and debts that are concealed.
CD&V's Benjamin Dalle pictured during the oath taking ceremony for the co-opted senators, at the Senate after the federal elections from June 9, Thursday 18 July 2024, in Brussels. Credit: Belga / John Thys
"This is not just sloppy budgetary policy – it is misleading accounting and unacceptable. Not only has this misled parliament, but it may also have misled institutions such as the European Investment Bank and the rating agency S&P," says Dalle.
The MP also takes particular issue with the fact that Minister of Budget and Finance Sven Gatz (Open VLD) categorically dismissed criticism on this matter in parliament in July. According to Dalle, Minister Gatz made statements at the time that contradict the findings of De Tijd and The Brussels Times.
"If the minister deliberately made false or misleading statements to Parliament in July, then that is a very serious matter. A minister who conceals or distorts the truth about the state of public finances undermines the credibility of the entire Region," said Dalle.
The CD&V politician is calling for an immediate meeting of the Finance and Budget Committee. According to him, there must be an urgent debate in which "complete transparency" is offered. "This is not just about figures, it is about trust," concludes Dalle.
"If it turns out that parliament has been misled for months with falsified figures, then that is not just a technical error – it is a matter of trust. We demand that all cards be laid on the table. Brussels needs honest figures, not polished reports."
