After rating agency Standard & Poor's (S&P) announced that it is maintaining the Brussels Region's credit rating at A with a negative outlook, Brussels' outgoing Finance and Budget Minister Sven Gatz (Open VLD) responded with a cautiously positive reaction.
Earlier this year, the rating was downgraded from A+ to A. In a statement issued Monday evening, Gatz also announced that Belfius Bank will terminate its €500 million credit line effective 1 January 2026.
"The financial markets still have confidence in the Region's ability to meet its obligations, but the budgetary situation remains worrying. The warning light on the dashboard remains on," Gatz stated.
He believes action is needed now to prevent worse and emphasised the urgent need to reduce the Region's debt so that interest payments can be reduced over time.
'Significant risk'
Gatz also referred Monday evening to a letter he received last week from Belfius Bank, which stated that the bank would discontinue its €500 million credit line effective 1 January 2026.
"Such loans are intended to cover temporary liquidity needs, for example. In the past, these credit lines were rarely used by the Brussels government," he said. "In the long term, this poses a significant risk because temporary deficits due to an imbalance between income and expenditure will become increasingly difficult to bridge."
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For him, S&P's negative outlook also reflects, among other things, the continued pressure on the budget due to rising expenditures. "A credible future perspective requires a fully-fledged new government with structural reforms and a realistic path toward a balanced budget."
Therefore, Gatz is also looking forward to the current coalition talks: "The ambition of the six negotiating parties to make an effort of €1 billion, of which at least €800 million in recurring savings, must be strictly achieved."
'First domino to fall'
The fact that S&P is maintaining the Brussels Region's rating is "no cause for celebration," says Brussels MP Bob De Brabandere (Vlaams Belang) on Tuesday. He referred to the Gatz's announcement that Belfius is turning off the credit tap for Brussels.
"The fact that the banks are now losing confidence is the first domino to fall, with the final bill ultimately falling on the Flemish and Brussels middle class," he said. "Allowing a government with a Flemish minority to be formed in this context is unacceptable."
The fact that Belfius will terminate the Brussels Region's €500 million credit line in January 2026 not only sends a clear signal, but is also dangerous in the long run. Firstly, because temporary deficits will become increasingly difficult to bridge due to an imbalance between income and expenditure, Gatz said.
But according to De Brabandere, there is a second risk: "The termination of the credit line could be a domino effect. The Brussels-Capital Region also has a credit line with ING, which, with this news in mind, might make the same decision."
He fears this could lead to another rating downgrade.
