Boom (Brussels Morning Newspaper) – The PVDA members in Boom organise protests against the financial policy measures adopted by the municipal government. Nearly twenty members initiated action at the municipality because the authorities demanded financial cost reductions. A bankruptcy of the municipality would occur if the savings were not implemented.
The Workers’ Party of Belgium’s local branch in Boom organised a protest against the city government’s announced spending cuts, which constituted a major financial crisis for the region. The demonstration involved about twenty PVDA members who argued that the financial situation stems from decisions made by the municipality. Alderman Rik Röttger (Vooruit) announced that the municipality will face financial collapse by 2027 because it lacks prompt cost-saving measures.
“But that is the fault of the board itself, they have been investing money in unnecessary projects for years,”
Says municipal councillor Rudy Van Rompaey (PVDA).
Boom’s financial situation is not good. That is why the municipality announced significant savings last month.
“If we do nothing now, we will no longer be able to pay any invoices by 2027,”
Said Alderman Rik Röttger (Vooruit) at the time.
PVDA states that the municipal government itself is setting a bad example.
“The first thing they did was increase their own attendance fees, set a good example yourself,”
Says Van Rompaey.
“The majority of those debts are also the fault of the municipality itself,”
Van Rompaey continues.
“So much money has gone to consultants. So much to failed projects. In the meantime, they are still working on other projects.”
What is the historical background of municipal finances in the Boom?
The Belgian municipality of Boom resides in the province of Antwerp, which displays substantial economic strength throughout Belgium. The Province of Antwerp generated 16% of Belgium’s total gross domestic product (GDP) in 2015 through its EUR 75.4 billion output, which accounted for EUR 479.1 billion of the national economy.
The economic activity in Antwerp centres on petrochemicals, together with logistics and knowledge industries, which share dominance with tourism and associated sectors, creating quantifiable economic value.
Belgium has continuously battled problems with excessive government debt levels and municipal financial management throughout its history. During the late 1980s, Belgium accumulated debt that amounted to 121% of its GDP through government spending, which exceeded revenue while maintaining heavy financial support for struggling sectors.
The late 1990s saw substantial fiscal realignments to meet European Union budget standards, so Belgium achieved a budget deficit of 0.2% of GDP in 20013. Belgium maintained high public debt levels, which grew from 99% of GDP in 2009 to 108% in 2021.
Local financial management strategies are formed through influences from within municipalities and external factors that affect their operation. Belgian municipalities have struggled to keep service quality constant while their real revenue levels decreased throughout the past twenty years. Municipalities fill their financial deficits by increasing external funding methods, which include borrowing and bond programs.
Municipal financial obligations through local borrowing surpassed 4% of GDP in Hungary in 2009 as the country experienced substantial growth in local bond issuances starting from 2006. The different municipal trends across Europe mirror general patterns of debt accumulation among cities, coupled with the difficulties cities face regarding budgetary commitments.
