The Debt Agency of the Fédération Wallonie-Bruxelles, FWB, is sounding the alarm bells as federation's debt levels keep rising, and its interest payments grow increasingly heavy.
By the end of 2025, the entity’s debt stood at €14.4 billion, equivalent to 107.64% of its income, up from 98% the previous year and 83% in 2023.
“This figure continues to rise due to successive deficits,” Jean-François Masure, an expert at the debt agency, said during the presentation of its annual report to parliament's Budget Commission. He described the situation as “quite worrying.”
The overall debt is not the only concern. Interest payments are also expected to increase in the coming years due to rising interest rates. The entity now borrows at an average rate of 3.6%, compared to the zero-rate borrowing it did in 2020.
In 2025, interest costs amounted to €289 million. This year, they are projected to climb to €357 million—a 23% increase. Without changes in policy, interest payments could reach €551 million by 2030 and rise to €1 billion within a decade.
If the situation remains unaddressed, the FWB could see its debt double over the next ten years, reaching €28 billion, or 163% of its revenue. The agency described this figure as “colossal.”
The report’s findings sparked a heated debate between opposition and majority lawmakers. Members of the governing MR-Les Engagés coalition argued that the agency’s assessment validated recent budget-saving measures.
“The current situation is disastrous, and if nothing is done, it will worsen tomorrow,” said Yves Evrard, a legislator from the Mouvement Réformateur (MR).
Opposition parties, while recognising the gravity of the financial situation, criticised the government’s approach and speed in implementing corrective actions.
“Cutting too quickly can have counterproductive effects,” warned Vincent Crampont (Parti Socialiste, PS).
The Belgian Workers Party (PTB) argued that the issue is not excessive spending but insufficient funding for the entity. Octave Daube cited findings from a recent study conducted by economists linked to unions.
“The situation is concerning,” Hajib El Hajjaji (Ecolo) noted.
He stressed the need for careful decision-making but criticised some of the measures taken by the majority such as tax breaks and costly policy changes, including replacing teachers’ job statuses with indefinite contracts.
