Brussels (The Brussels Morning Newspaper): Belfius highlights Brussels local government challenges, with rising pension costs over 40% of expenses, leading to a small surplus of €58.5 million amid increased spending.
Belfius’s report on Tuesday listed the money issues for Brussels’s local government in the upcoming term. Pension costs are the biggest concern, followed by security, social help, and energy changes. The report shows a huge rise in staff expenses, making up over 40% of all local community spending. This is because of higher pension costs for permanent staff, salary increases, and social agreements. Pensions are around 13% of what municipalities spend on staff, as per Belfius. For example, the “responsibility contribution” has doubled from €50 million to €101 million between 2021 and 2024 and is expected to hit €176 million by 2028.
What Financial Challenges Will Brussels Face Ahead?
Looking back on the last six years, Belfius recognized it as a rough journey with COVID-19, high inflation, increased costs, an energy crisis, and higher interest rates. Local government spending increased by about 5.6% each year from 2019 to 2024, reaching a peak of 9.2% in 2023 due to inflation and energy costs. Belfius discovered that Brussels municipalities will have a little extra money of €58.5 million this year, about 1.9% of their usual income. That’s a large drop from the almost €200 million extra they had in 2019.
Dirk Gyselinck from Belfius said that this year is a chance to look back at the past six years of local finances and plan for the future. Despite many crises, local authorities have succeeded in investing in the future, especially in sustainability, and maintaining financial stability.
