The Brussels Housing Fund’s decision to suspend new mortgage applications from 1st July due to lack of funds has sparked a heated debate in the regional parliament about political accountability.
Several left-wing legislators criticised Brussels Finance Minister Sven Gatz (Open Vld) for blocking a request for government support, initiated by the State Secretary for Housing, Nawal Ben Hamou (Parti Socialiste).
Ben Hamou had requested the release of €50 million that banks are unwilling to lend the Fund, so as to prevent the suspension.
The legislators argued that the government had already included a guarantee for the full €130 million needed for loans from the Fund in 2025, making the minister’s decision puzzling, especially since young families and Fund staff face denied loans and temporary unemployment, respectively.
Gatz clarified that while the government guaranteed a €130 million loan request from the Fund, banks only agreed to lend €80 million.
“I can only observe that trust in a solid institution like the Housing Fund is waning among banks. It’s regrettable,” Gatz said. “The Housing Secretary brought this funding request to the government, which is commendable, but we lack the funds. Resorting to ‘Code 8’ to unlock these funds would add to our debt,” the minister stated.
“The notion of perpetually handling current affairs doesn’t exist. I accept criticising a minister for not doing their job, but not for doing it,” he added.
During the intense debate, Vooruit party leader Pascal Smet said he understood the minister’s caution to some extent, but doubted this was the right case for it. He urged the government partners to strive to reduce the 2025 deficit to €1.2 billion.
“If this target is met, other issues might be resolved,” he suggested.
