After nearly one and a half years without a regional government, the consequences are being felt across the Brussels-Capital Region. Now, Brussels is at risk of going into shutdown mode if nothing swiftly changes.
The financial situation of the Brussels Region is in such turmoil that a shutdown (the suspension of public services) is a possibility, according to new Brussels Budget Minister Dirk De Smedt (Open VLD).
"There is a real risk of a shutdown in Brussels, I will not belabour the point," he said on Flemish radio programme 'De Ochtend' on Tuesday. "We need to get to work. Continuing these kinds of deficits is impossible."
Specifically, De Smedt says, this means that Brussels need to provide some clarity to the financial markets in the very short term "to restore their credibility," but also "implement several systemic adjustments to prevent a shutdown."
De Smedt succeeded Sven Gatz, who resigned from his position in mid-October, citing personal health issues.
Business as usual?
The Brussels Region – which has now been without a full-fledged government for 528 days – lost a €500 million credit line from the Belgian state-owned bank Belfius last month, making it increasingly difficult for the region to cover its financial shortfalls.
"We urgently need a government with full powers," De Smedt said. "I think that at some point, everyone will truly have to grasp how urgent this is."
However, he felt that this sense of urgency was lacking when he started the job three weeks ago. "I got the distinct impression that everyone was very much in 'business as usual' mode. The focus on some basic principles, such as restraint, good governance and efficiency, was insufficient."
In an interview with The Brussels Times last week, De Smedt stated that he believes that even a government in caretaker mode can improve things. Despite his warning about the possibility of a government shutdown, he repeated this sentiment on Tuesday.
"Being in caretaker mode does not allow anyone to make major new political decisions, but that does not mean the current policy cannot be made a bit more efficient or that certain things cannot be prioritised or shifted," De Smedt said.
Newly appointed Brussels region Minister Dirk De Smedt arrives for his oath-taking ceremony, Friday 24 October 2025 in Brussels. Credit: Belga
As the former Director-General of the regional taxation agency Bruxelles Fiscalité, De Smedt understands the complicated structures at work in the capital, as well as how they can complicate decisions.
"Honestly, I think that we are too often financing structures, not people," he said. "In that sense, I think being in caretaker mode offers an incredible opportunity to put things in order."
In recent weeks, there has been controversy over the way the Brussels budget has been managed in recent years. Research by The Brussels Times in collaboration with De Tijd revealed that a series of unconventional techniques were used to draw up the region's current budget.
First and foremost, a proper budget for 2025 should be implemented as soon as possible, he said. "Every euro must be turned over not twice, but three times or even four times, before we spend it. The deficit in 2025 must absolutely be lower than it was in 2024. That is absolutely the first priority."
Clarity and transparency
Investment ambitions need to be revised as well, De Smedt stressed. "It is unwise to return to business as usual and continue investing if the financial situation does not allow it."
Lastly, transparency and clarity about the figures are "extremely important," he said. "Much is being said about the situation today, and many interpretations are being given to it. It is important to be clear and map out a transparent path."
Currently, the Brussels-Capital Region's total debt is around €10 billion. If the government does not drastically change course, experts predict that Brussels is headed towards a total debt of €17 billion, 286% of its yearly income.
In the near future, that percentage is expected to hit 300%, meaning that Brussels would owe three times what it takes in over a full year.
