“Brussels Region’s debt is under control and will continue to be,” regional Finance Minister Sven Gatz said in Parliament on Friday.
Gatz gave the assurance in response to concerns expressed by opposition legislators during a debate on the regional budget that opened on Thursday in the Brussels parliament.
With elections fast approaching, most opposition speakers expressed concern not just because of rising debt during the legislative period, but also due to recurrent crises.
Gatz addressed these concerns directly. Yes, debt has increased significantly, he acknowledged. However, thanks to more anticipatory management in Brussels, most of it is repaid in the long term through borrowing at low rates.
“The debt is under control and we will continue to manage it,” he asserted.
Brussels government has agreed on a debt ceiling for the first time, he explained. Just as an express train does not come to a halt instantly, this threshold should serve as a guide for the region over the coming years, he said.
Gatz also explained that one-third of the region’s debt was due to successive crises, and another third to strategic investments such as the subway and tunnel infrastructure. He ascribed the remaining third to an increase in regular expenses which, he stressed, “are the devil that needs to be put back in the box.”
At the same time, long-standing strategic investments that were kept out of the budget need to be gradually reincorporated, he stressed.
Responding to the Workers’ Party of Belgium, which accused him of plunging the population of Brussels into austerity, Gatz said the government’s policy shift remained reasonable, and that future measurements would be needed.
“Otherwise, we won’t get there,” he said.
