Walloon Budget Debate: PS Warns of Painful Austerity Measures

Christie Morreale, leader of the Socialist Party (PS) group in the Walloon Parliament, has sharply criticized the budget adjustment proposed by the MR-Engagés coalition government, arguing that the planned austerity measures will unnecessarily hurt citizens and that viable alternatives exist. Speaking on RTBF’s “Matin Première” radio program on June 16, Morreale warned that the government is preparing far deeper cuts than it has acknowledged.

Budget Context and Rising Tensions

Walloon deputies are currently debating the 2026 budget adjustment — a mid-year correction to the budget adopted in December 2025. The government, led by Minister-President Adrien Dolimont (MR), initially framed the effort at €270 million in savings. However, according to RTBF, Morreale claims the government is preparing four times more savings than what was achieved over the past two years, with a total trajectory of €2.3 billion in savings targeted by 2029.

“The majority has made partial confessions,” Morreale said. “All the efforts made so far have only served to pay for the tax reform, with choices that favor only a few, and the wealthiest.”

Unemployment Crisis Deepens

The debate unfolds against a backdrop of worsening economic conditions in Wallonia. According to data from Forem, the regional employment agency, nearly 270,000 people were registered as job seekers in May 2026 — the highest figure in 20 years. Morreale highlighted the deteriorating labor market, noting that while four people previously competed for each available job, that number has now doubled to eight.

“The choices they’re making are stopping the economic machine,” she said. “Many businesses in difficulty, many people have reduced purchasing power, the economy is slowing down — they’re heading straight for the wall.”

Tax Reforms Under Fire

Morreale directed particular criticism at two flagship tax reforms implemented by the MR-Engagés government. The reduction of registration duties (droits d’enregistrement) from 12.5% to 3% for first-time homebuyers was budgeted at €250 million but has already cost €295 million. Morreale argued the reform has primarily benefited wealthier buyers, citing a 61% increase in transactions involving properties worth over €1 million.

“The objective was laudable,” she acknowledged. “The means they chose are bad. It was ‘open bar.’”

The inheritance tax reform, voted in 2024, will cost an estimated €400 million annually once fully implemented. Maximum rates are set to be halved by 2028 — from 30% to 15% for direct line relatives, and from 80% to 40% for others. Morreale described the reform as regressive: “The more you are rich, the more money you will gain. It’s quite caricatural.”

Combined, Morreale estimates the fiscal reforms add €800 million in debt, which she equated to “11,000 teachers or €500 per household.”

Alternative Savings Proposed

Despite her sharp criticism, Morreale insisted that necessary savings can be achieved without harming citizens. She pointed to €600 million in unused climate “burden sharing” funds that could be redirected to energy renovation, and what she described as significant windfall effects in the training sector that have not been recaptured.

“There is a way to make savings without hurting people,” she asserted.

Political Fallout and Protests

The budget debate has intensified political tensions in Wallonia, where the MR-Engagés coalition succeeded the previous PS-MR-Ecolo government. Morreale pushed back against accusations that the PS bears responsibility for Wallonia’s fiscal challenges, noting that the MR has held the Finance portfolio for a decade.

Meanwhile, the debate has spilled into the streets. According to RTBF, thousands of protesters gathered in Namur on Tuesday, called by the CSC-FGTB trade union front and civil society organizations, to denounce the government’s budgetary policies. Demonstrators accused the government of making “those with the most fragile shoulders” bear the burden of austerity.

What’s Next

The commission vote on the entire budget adjustment decree is scheduled for Friday, with a plenary session vote expected in July. The outcome will test the Dolimont government’s ability to push through its fiscal agenda amid mounting opposition from both political adversaries and civil society.

As Morreale put it: “Now they’re going to hit the bone, it’s going to hurt people, and people have the right to know what’s in store for them.”