Molenbeek’s ‘Truth Budget’: €312,000 Deficit, 40 Layoffs
The municipal college of Molenbeek-Saint-Jean has presented a “truth budget” (budget vérité) for 2026, revealing a deficit of €312,000 on a total budget of approximately €255 million and announcing 40 layoffs as part of painful austerity measures. The budget, presented on June 19 by Mayor Catherine Moureaux (PS), acting Finance Alderman Dirk De Block (PTB), and CPAS President Ahmed El Khannouss (Molenbeek Autrement), is the result of months of difficult negotiations within the governing coalition and represents a realistic assessment of the commune’s finances, according to RTBF.
Background: A Commune Under Financial Strain
Molenbeek-Saint-Jean, home to nearly 100,000 residents, is one of the poorest communes in Belgium and has been under regional financial supervision (tutelle) for years. The current governing coalition — comprising the Socialist Party (PS), the far-left Workers’ Party (PTB), and local list Molenbeek Autrement — was formed after the October 2024 local elections, excluding the liberal Reformist Movement (MR) that had previously held power. The commune has faced recurring budget difficulties, with deficits growing from €9 million in 2023 to €10.8 million in 2024, while reserves were depleted from €12 million to €2.8 million between 2019 and 2024.
Key Austerity Measures
The budget includes several significant cost-cutting measures. The commune will lay off 20 municipal workers and 20 CPAS (Public Centre for Social Welfare) workers. The year-end bonus will be reduced by approximately 50% on average, with progressive reductions: roughly 40% for the lowest salaries and up to 80% for senior management and college members. The policy of not replacing retiring staff, already in place for three years, will continue, as BruxellesToday reported.
The adjusted deficit would have reached €1.793 million had the commune not drawn on municipal reserves to fund staff departures. The college has committed to monthly financial monitoring in the coming months.
Services Preserved
Despite the austerity measures, the college has chosen to maintain police staffing at 882 full-time equivalents for 2026-2027, which will require an increased municipal contribution due to federal mandates. A €1 million budget has been allocated for expanding the camera surveillance network. Investments in four municipal schools will be maintained, as will sanitation services and support for social organizations. The extension of the Maison des cultures cultural center will proceed as planned.
Political Reactions and Blame Game
The budget has intensified political tensions. The MR opposition has seized on the austerity measures, arguing that excluding them from government has led to fiscal mismanagement. The PTB counters that they inherited a deteriorating situation from previous MR-led administrations. Giovanni Bordonaro, PTB Brussels Regional President, stated that the PTB “is bringing order to Molenbeek and refuses to slash public services,” as reported by RTBF.
Mayor Moureaux defended the exercise, saying: “In a large commune that is also one of the poorest, one cannot imagine what this exercise represents, with the rain of impactful measures that have been taken at all levels of government. This majority did not let spending explode.” However, she acknowledged the gravity of the situation, telling DHnet earlier this month: “The situation is very complicated. Honestly, we don’t yet know how or even if we will reach balance.”
Social Impact and Union Response
The 40 layoffs and bonus reductions have sparked outrage among workers. A CSC union representative told 21News that “everyone is in shock.” Unions have threatened indefinite strike action, with a first protest expected at the next municipal council. The CPAS is under particular pressure, with beneficiary numbers rising from 7,300 to 8,500 in a short period, while its municipal allocation of €43.7 million falls well short of estimated needs of €51.5 million.
Broader Context and Forward Look
Molenbeek’s financial crisis reflects broader pressures facing Brussels communes, including rising social costs, federal mandates, and limited fiscal autonomy. The PTB has launched a campaign highlighting that Molenbeek residents receive €380 less per capita in municipal services compared to other Brussels residents.
The budget is scheduled for formal presentation at an extraordinary municipal council on June 24, 2026, after which it will be examined by the regional oversight authority (tutelle régionale). The coming weeks will be critical as the commune navigates union opposition, regional scrutiny, and the challenge of maintaining essential services with reduced resources. Whether the “truth budget” proves sustainable — or whether further measures will be needed — remains an open question.