On Wednesday, Brussels municipalities denounced an "unprecedented" financial shock that could reach €1.7 billion between 2025 and 2029, according to estimates by Brulocalis, the association of Brussels municipalities and CPAS (public social welfare centres).
At a press conference with the Conference of Mayors, with the support of the Federation of Brussels CPAS, they called for an urgent rebalancing between the levels of power.
According to Brulocalis, decisions taken at different levels of government could represent €1.718 billion in additional costs over five years. However, the compensation announced would only cover 26.7% of this amount, leaving €1.258 billion to be borne by the Brussels municipalities.
The local authorities explained that they had already absorbed the consequences of successive crises and were now facing significant transfers of costs, often without sufficient consultation. They are particularly concerned about the implementation of the federal government's agreement of 31 January 2025, which they believe will lead to cost transfers in four main areas: policing, poverty, pensions and tax reform.
Brulocalis also pointed to the inadequacy of federal compensation linked to the unemployment reform. The Federation of Brussels CPAS (public social welfare centres) also sounded the alarm about the consequences for local finances and support for vulnerable groups.
The municipalities also mentioned the uncertainties surrounding the financing of local staff pensions, the expected additional costs for the local police and the future impact of the tax reform, which would deprive the municipalities of €17 million in revenue from 2029 onwards.
‘The year 2025 marked a turning point in the financial situation of Brussels municipalities,’ said Brulocalis President Christian Lamouline. Municipalities are now calling for a binding framework guaranteeing systematic consultation with higher levels of government and compensation when their decisions have a financial impact.
