Brussels Government Approves Provisional Budget Cuts.. Ensuring Stability Until September

Brussels Government Approves Provisional Budget Cuts for Stability

Brussels faces its third provisional budget as the government races to reduce a 1.6 billion euro deficit before Standard and Poor’s June review.

Marie Dupont23 May 2025Last Update : 7 hours ago

De Brusselse regering keurt voorlopige twaalfden goed tot september

www.bruzz.be

The Brussels government faces ongoing financial challenges as it prepares to discuss a key budget ordinance on 5 June 2025-05-23 16:05:00. With no approved 2025 budget due to the absence of a fully functioning Brussels government, provisional funding measures remain in place. This situation marks the third time the region has had to rely on “voorlopige twaalfden” or provisional twelfths to keep public services running.

6 Key Takeaways

BRUZZ reports ordinance discussed June 5
Government faces third provisional budget period
Emergency budget seeks €400 million savings
Officials aim to prevent credit rating downgrade
S&P meeting scheduled for June 13
Critics question emergency budget's feasibility

In parallel, the outgoing government is drafting an emergency budget aimed at reducing the projected deficit from €1.6 billion to €1.2 billion. The effort is crucial to convince credit rating agency Standard and Poor’s to maintain Brussels’ current A+ rating, which was downgraded last year. Minister-President Rudi Vervoort and Budget Minister Sven Gatz are scheduled to meet with S&P representatives soon, with a rating decision expected on 13 June.

How realistic is the plan to cut the deficit by €400 million in just a few months? And can the government avoid further provisional funding periods? These questions loom large as Brussels seeks financial stability.

Fast Answer: Brussels continues using provisional budget measures amid political deadlock, while urgently drafting an emergency budget to reduce its deficit and avoid a further credit rating downgrade by mid-June.

Brussels’ financial outlook raises concerns about the government’s ability to control spending and meet deficit targets. The emergency budget committee includes officials from government and finance inspection, yet critics highlight several challenges:

Short timeframe from September to December to implement €400 million in cuts
Previous provisional budgets showed significant overspending on contracts and staff bonuses
Uncertainty remains about budget control for the upcoming July to September period

Brussels’ ongoing budget issues reflect broader political instability in the region, impacting public services and investor confidence.

Brussels must act swiftly to finalise its emergency budget and present a clear fiscal path. Will the government succeed in convincing Standard and Poor’s to maintain its credit rating? The coming weeks will be critical for the region’s financial future and political stability.