Brussels Summer Deal: Tax Cuts, LEZ Reform, and New Pool

The Brussels regional government has announced a wide-ranging summer agreement encompassing personal income tax cuts, a socially adjusted reform of the Low Emission Zone (LEZ), major public transport investments, and the construction of a new outdoor swimming pool. The package, reached after marathon talks at the historic Val Duchesse castle in Auderghem, represents the most significant policy milestone yet for the seven-party coalition that took office in February after a record 600-day formation crisis.

Background: A Government Forged in Crisis

Minister-President Boris Dilliès (MR) described the accord as a demonstration that the coalition is delivering on its promises. “We have taken Brussels in hand to give it direction,” Dilliès said, as reported by La Libre Belgique. The government, which Dilliès himself has called “the most complex in the kingdom,” brings together seven parties across linguistic and ideological divides.

The agreement comes just weeks after the Foyer Anderlechtois housing scandal threatened to destabilize the coalition. Tensions had escalated in the days leading up to the Val Duchesse meeting, with Budget Minister Dirk De Smedt (Anders) threatening to boycott the session. A parliamentary commission of inquiry conducted over 150 hours of hearings, and its recommendations were validated by the Brussels Parliament on July 18.

Tax Cuts: A Targeted Fiscal Shock

The centerpiece of the agreement is a 1% reduction in personal income tax (IPP), taking effect from the 2028 tax year. For a single person earning €2,700 net per month, this translates to annual savings of €147; for a married couple with two children and two incomes of €2,400 net each, the saving amounts to €152. Employment Minister Laurent Hublet (Les Engagés) described the measure as a “targeted fiscal shock” designed to remove barriers to investment, as noted by Brussels Today.

The “Be Home” property tax premium for homeowners will double from €164 to €328 starting in 2027. Temporary tax exemptions will also accelerate the redevelopment of dormant economic sites including Audi, Solvay, Schaerbeek-Formation, and Mediapark.

The LEZ calendar remains unchanged, but a social reform will enter into force in 2027. A €350 annual pass will be available for vehicles that can no longer circulate after the final LEZ milestone, valid for a maximum of five consecutive years. This drops to €200 for low-income residents with BIM status. Full exemptions apply to the most vulnerable households, and derogations are provided for healthcare professionals and certain tradespeople who must work regularly in the city, according to RTBF.

Public Transport and Infrastructure

The government has approved a major multi-year investment plan for the STIB public transport authority. The metro network will receive 43 new M7 trains, which will also operate on lines 2 and 6. New TNG trams will replace aging PCC models, while T4000 trams will strengthen the North-South axis. The Tram 15 project connecting Gare du Nord to Belgica via Tour et Taxis will continue. On the bus network, 200 new vehicles will accelerate fleet electrification. Major redevelopment projects are planned at Place Meiser and Place Van Gehuchten.

New Outdoor Swimming Pool and Other Measures

Brussels will build an open-air swimming pool on the roof of the Manufacture building at the Abattoirs site in Anderlecht. The government has launched the public procurement process for design, construction, and management, with the pool water to be heated using recovered heat from building activities.

Other measures include a ban on shared e-scooters from 2027, over €130 million in hospital renovations, more than €10 million allocated to combat school dropout rates, and the appointment of a special commissioner for four months to oversee the Foyer Anderlechtois housing company.

Analysis: A Fragile Coalition’s First Major Test

The summer agreement represents a critical milestone for the Dilliès government. Minister of Social Action Ahmed Laaouej (PS) characterized the approach as “efforts but without austerity,” as reported by RTBF, noting that no financial contributions were demanded from communes and that subsidized employment programs were preserved.

The government maintains its target of budget balance by 2029, but the combination of tax cuts and increased spending across transport, education, and healthcare will require careful fiscal management. The seven-party coalition’s ability to reach consensus on contentious issues like the LEZ and tax policy demonstrates functional governance, but the Foyer Anderlechtois scandal has exposed its fragility.

What’s Next

The LEZ social reform will take effect in 2027, followed by the income tax reduction in 2028. The government faces the ongoing challenge of maintaining coalition cohesion while managing Brussels’ strained finances. With the next regional elections still over 1,000 days away, the summer agreement provides a foundation — but the question of whether this broad coalition can weather future storms remains open.