Interregional money transfers from the Brussels-Capital Region to Wallonia are rising and will increase even more in the coming years, a new study on financial flows between Belgium's three regions shows.
The increasing flow from Brussels to Wallonia has a lot to do with the Brussels population being younger on average, according to a study by professors Willem Sas (KU Leuven/University of Stirling) and Tom Truyts (KU Leuven/Saint Louis) reported on by De Tijd and L'Echo.
Some €2.6 billion went from Brussels towards Wallonia in 2023. For Flanders, the money flow to Wallonia rose to €8.5 billion last year – meaning Wallonia received a total of €11.4 billion.
Importantly, it does not amount to actual money transfers from one region to another. Instead, it concerns the deviation from the national average in terms of contributions (taxes and social contributions) to the community, minus the social benefits received.
Contributors and recipients
In practice, this means that net, Flanders and Brussels are paying more than the national average, making them the two "contributors." Wallonia, on the other hand, is a "recipient."
"When expressing these flows in per capita terms, this net outflow from Brussels stands out even more, becoming even larger than the Flemish one," the researchers pointed out. The Brussels contribution in 2023 comes down to exactly €2,100 per Brussels resident, compared to "only" €1,259 per Flemish one.
"The reason for this lies mainly in the relatively younger population of the Brussels-Capital Region and the lower spending on pensions and healthcare expenditure that follows from this, together with higher corporate tax revenues," they said.
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While the Flemish contribution is expected to remain constant per capita in the coming years, the Brussels contribution is projected to rise to €3,316 per capita in 2028.
Again, demography is the explanation: Flanders' population will age considerably in the coming years and therefore receive more for pensions and healthcare.
In total, the Brussels transfer towards Wallonia would rise to €4.1 billion in 2028 and the Flemish €8.8 billion, which would mean Wallonia would receive a total of €12.9 billion in that year.
