Brussels Budget Faces Fourth Tranche

Emergency budget talks fail; prior spending scrutinized.

Despite recent discussions, Brussels is preparing for the next phase of budget management, since officials could not agree on how to cut expenses. The government will proceed with the established financial plan.

Budget Impasse

Over the past two weeks, trilateral discussions involving the cabinets of Prime Minister Rudi Vervoort (PS), Minister of Finance and Budget Sven Gatz (Open VLD), and relevant ministers and administrations took place. The aim was to find a way to save 400 million euros through an emergency budget. These efforts, however, did not yield the desired outcome.

That is why we are preparing for the original scenario: the fourth tranche of the provisional twelfth, says Sheraz Rafi, spokesperson for Minister Gatz.

The provisional twelfth system allows the government to spend one-twelfth of the previous year’s budget each month while operating in current affairs. While this is meant to be a strict budgetary framework, some parties have pointed out that the Vervoort government did not always adhere to the limits in previous tranches. As a result, the region faces continued financial strain, impacting key sectors like transportation and education (Brussels Times 2024).

Provisional Twelfth Explained

Under this system, the government can allocate funds monthly based on the preceding year’s expenditures. This approach is typically used when a new budget has not yet been approved, allowing essential services to continue operating.