Wallonia Relieved as Embarkation Tax Hike Capped at €7

Wallonia has expressed relief after the Belgian federal government abandoned plans to double the embarkation tax to €10 per passenger, settling instead on a more moderate increase to €7. The decision, reached during a marathon Council of Ministers session that concluded in the early hours of Saturday, July 18, marks a significant compromise between federal revenue objectives and regional economic concerns.

The tax, which applies to passengers departing from Belgian airports, will rise from its current rate of €5 to €7 from January 1, 2027, for international flights between 500 and 3,500 kilometers. The original proposal, part of the Arizona coalition government’s budget agreement led by Prime Minister Bart De Wever, had called for a jump to €10 with further increases planned for 2028 and 2029.

Background: A Flashpoint in Federal-Regional Relations

The embarkation tax had become a major point of tension between the federal government and the Walloon region. Wallonia, governed by a MR-Engagés coalition under Minister-President Adrien Dolimont, argued that the original increase would disproportionately harm Brussels South Charleroi Airport (BSCA), a key economic driver for the region that relies heavily on low-cost carriers.

In February 2026, the Walloon government sent a formal letter to Prime Minister De Wever demanding the tax hike be frozen, denouncing what it called a lack of consultation. According to La Libre Belgique, the letter stated that “no consultation with the Region was carried out before the announcement of such a decision, guided solely by the concern to increase federal revenues to the detriment of the economic and strategic interests of Wallonia.”

Ryanair’s Pressure Campaign

The stakes were amplified by Ryanair, Europe’s largest low-cost carrier and the dominant operator at Charleroi. The airline had threatened to remove 1 million seats from the Belgian market, withdraw five aircraft from Charleroi, and cut 20 routes if the tax were doubled. CEO Michael O’Leary publicly attacked the government’s policy, warning of severe economic consequences for the region.

The Compromise

After what the Walloon government described as “numerous exchanges between Bart De Wever, David Clarinval and Adrien Dolimont,” an agreement was reached. The decision to revise the tax modalities was framed as a way to “limit its impact on the competitiveness of Belgian airports vis-à-vis their foreign counterparts,” according to the Walloon government.

The compromise was welcomed by Charleroi Airport management, who thanked both levels of government for “having taken into consideration the concerns expressed by the sector and for having favored a more balanced approach to limit impacts on employment, the competitiveness of Belgian airports and the connectivity of our country.”

Part of a Broader Summer Package

The embarkation tax decision was one of several major dossiers approved by the Council of Ministers before the parliamentary summer recess. The broader package, as reported by 7sur7, included the annualization of working time, a new family credit of five days per child, football law reform with stricter penalties, a €60 million envelope for police pay increases, prison minimum service implementation, and the partial privatization of Belfius bank.

Analysis: What the Compromise Means

The outcome represents a clear victory for Wallonia’s regional interests and demonstrates the significant bargaining power of major low-cost carriers over regional economies dependent on aviation. Charleroi Airport, Belgium’s second-largest passenger hub, remains competitive as a low-cost destination, potentially averting the severe capacity cuts Ryanair had threatened.

However, the reduced tax rate — €7 instead of €10 — will generate less revenue for the federal government at a time when Belgium faces significant fiscal pressure. The European Union has given Belgium a seven-year timeline to implement fiscal consolidation, with an additional €10 billion in savings needed by 2029.

What’s Next

Key questions remain unanswered. It is unclear whether Ryanair will now commit to maintaining its full operations at Charleroi or continue to seek further concessions. The federal government must also determine how the reduced tax revenue will be compensated in the broader budget, and whether the €7 rate could face further revisions in future budget negotiations. These questions will likely feature prominently when the government returns from summer recess to tackle its most pressing challenge: agreeing on a fiscal trajectory through 2029.