When will there be a new government in Brussels? Banks and businesses losing patience

Brussels MR leader David Leisterh will hold a press conference on Friday afternoon where he is expected to provide clarity on the long overdue formation of a Brussels regional government. The prolonged political deadlock is leading to growing frustration among financial institutions and business leaders.

The Brussels regional elections in June last year produced a complex result, with different political parties emerging victorious in the two language groups. Since then, the formation of a new regional government has stalled, leaving the region in a state of political paralysis.

Cut in credit line

The prolonged deadlock is now affecting business operations. On Thursday, Sven Gatz, the Budget minister (Open VLD), confirmed Belfius Bank’s decision to cut the Brussels Region’s credit line. While downplaying immediate financial consequences, he acknowledged the move’s symbolic significance.

"A cash credit line is a short-term credit facility," Gatz explained. "Brussels has hardly used this credit line and can still finance its financial needs on relatively favourable terms. But the message from Belfius is unmistakable".

Concerned business leaders

Business leaders are also growing impatient. The Flemish employers' organisation Voka has published an open letter, signed by some 40 companies operating in Brussels, calling for immediate political action. Signatories include major companies such as Nestlé, Ageas, Orange, Euroclear, Coca-Cola, Novo Nordisk and Sodexo.

Brussels is slowly but surely going downhill

"We, business leaders and companies based in Brussels, are sounding the alarm. This situation cannot continue," the letter begins. "We have been without a government for months and there is no breakthrough in sight. Brussels is slowly but surely going downhill".

Problematic situation

The signatories criticise what they describe as an "extremely problematic security situation", inadequate public cleanliness and the "alarming" state of the region's budget. "We are concerned about the safety of our customers, suppliers and employees," the letter says. "Essential investments in basic infrastructure are at risk of being cancelled."

Despite these pressing challenges, political deadlock persists and the formation of a new government remains elusive. "We call on all politicians who care about the economic future of Brussels - the capital of Europe, of our country and of Flanders - to form a new government and start the urgent reforms that Brussels so desperately needs."

^{MR chairman Georges-Louis Bouchez and MR David Leisterh pictured during a press conference on the negotiations for a new government for the Brussels Capital Region. © BELGA PHOTO NICOLAS MAETERLINCK}