'Negative outlook' for Brussels finances, but minister remains optimistic

Credit rating agency Standard & Poor’s (S&P) has confirmed a credit rating for the Brussels region of A, but with a negative outlook.

Brussels finance minister Dirk De Smedt (Anders) described the rating as a "cautiously positive signal".

“The fact that Standard & Poor’s has affirmed our rating is important, it shows that there remains confidence in the course we have set,” said De Smedt.

“At the same time, the negative outlook is a clear signal. We must continue to work on restoring our finances.

"A rating is not an end in itself, but a consequence of policy. What matters is that we are restoring confidence step by step, among investors, among partners and, above all, among the people of Brussels themselves."

According to the minister, S&P’s decision shows that international financial markets continue to regard the region as a reliable borrower, despite the challenging budgetary context.

The agency emphasised that the Brussels region has made significant efforts towards a balanced budget over the past year, according to De Smedt, and the rating agency expects these efforts to continue in 2026.

De Smedt said it marked the starting point of a journey towards financial stability, with a deficit kept under control and a clear ambition to achieve a balanced budget again by the end of the legislative term.

Brussels MP and chairman of the Flemish Community Commission (VGC) Benjamin Dalle (CD&V) was less optimistic about the rating.

“It’s good that the Brussels region’s credit rating has not been downgraded, but at the same time, the negative outlook confirms that there is still a long way to go towards budgetary recovery,” Dalle said, adding that the path towards a balanced budget in 2029 was crucial.

“It’s therefore worrying that S&P assumes that only 60% of the planned efforts will actually be realised. Moreover, debt continues to rise.

"By 2028, the debt ratio is set to rise to almost 300% of revenue, with outstanding debt of around €19.4 billion. The situation therefore remains particularly precarious."

Meanwhile, a new €250 million credit line from Deutsche Bank is seen as a positive signal. It strengthens the region’s liquidity position and confirms the financial markets’ renewed interest in the Region’s financial soundness.

This is the first time that an international bank is stepping in as a lender to the region.

“The entry of an international bank shows that confidence in Brussels is growing. We’re pursuing a consistent financial policy and taking steps towards stability. This is now also being recognised externally,” said De Smedt.

“These credit lines give us the necessary scope to meet our obligations smoothly, whilst at the same time continuing to work on structural reforms and a sound budgetary path.”

The credit lines form part of a broader strategy in which the region is committed to sound finances and a strengthened position in the financial markets, De Smedt said, emphasising that financial stability is a central objective of this legislative term.

Olivier Delfosse, chief country officer at Deutsche Bank Belgium, said the bank was determined “to become the European leader in the banking sector, with the ambition to be - in every country where we operate, including Belgium - the key financial partner for all the needs of major clients in the public and private sectors”.

The confirmation of the rating and the arrival of Deutsche Bank as a lender both come as the Brussels parliament just approved the 2026 budget.

The majority voted in favour and the opposition against, by 53 votes to 32. A plenary session of the Brussels parliament will be held on Saturday 14 February 2026 for the swearing-in ceremony.

The vote was preceded by a week of intensive committee work, during which each minister came to explain their specific areas of responsibility, and by a lengthy plenary debate on Friday.

This first full-year budget since the June 2024 elections marks a significant milestone. It allows a move away from the "provisional twelfths" system - where money was released in small monthly batches based on the 2024 budget. The Brussels budget for the last nine months of 2026 shows a deficit of €957 million.

This new budget fulfils the commitment made in the government agreement to remain below the one-billion mark.

Revenue stands at €6.622 billion, whilst expenditure amounts to €7.613 billion, resulting in a budget deficit of €992 million.

After taking into account budgetary operations, including notably an under-spend of €35 million, the balance of receivables stands at -€957 million.

Dalle said the government must do everything in its power to fully achieve the budget’s targets.

“We expect the current budgetary path to be implemented not at 60% but at the full 100%,” said Dalle.

“Approval of the 2026 budget is a first important step in this regard, but the road to recovery is still long.”