Restoring order to Brussels' finances without stifling economic dynamism: Dirk De Smedt takes on a balancing act that is as necessary as it is delicate. A conversation with the Brussels minister.
The margins are tight, expectations are high. As head of regional finances and administrative simplification, Dirk De Smedt follows one constant guiding principle: restoring order to Brussels' complexity. Less fragmentation, clearer mechanisms, and a government focused on the essentials. Yet the central question of the Brussels debate remains unchanged: how do we consolidate without causing the engine to splutter? It is precisely that balance that the minister says he wants to restore.
Companies fear they will be left footing the bill for budget adjustments. Can you guarantee that fiscal consolidation will not lead to increased pressure on the business community ?
In an exercise of this scale, no one is exempt from cuts. Subsidy flows to businesses will therefore also come under scrutiny. What I can guarantee is that there will be no increase in direct tax pressure on our companies.
Entrepreneurs are the engine of our economy. Putting extra pressure on them now to generate more revenue would be enormously counterproductive. We need them badly if we are to meet our employment targets.
Brussels is the engine of our country, but we have noticed in recent years that our growth is lagging behind that of other regions. Often our scale-ups leave the city after a while and move to the outskirts or to Flemish Brabant.
Several economic players have expressed surprise at the cuts to innovation. How do you explain this choice ?
Innovation and development are a top priority for this government. The fact that the Minister-President has taken this portfolio under his own wing speaks volumes in that regard. I was myself involved in founding Innoviris, then still called IWOIB, 25 years ago. Collaboration with our universities was already crucial then, and that remains true today: they are the true engines of innovation.
As for the cuts: I realise this does not always make for pleasant listening, but everyone will have to contribute part of the effort. Here too, it is an exercise in efficiency. Today, for example, we see that Innoviris is still too often used for internal transfers. Certain regional actors — administrations or autonomous institutions — submit files for subsidies for innovative projects and research; that is not the intended purpose of Innoviris.
At the same time, we have just launched a working group that analyses and categorises every subsidy individually against clear policy objectives — a kind of zero-based budgeting for discretionary subsidies. On that basis we will make adjustments, rationalise, and where necessary convert subsidies into more strategic instruments or structural agreements. We are also placing a clear focus this legislature on cutting-edge technologies. I will do everything in my power to protect innovation to the maximum, as it is essential for our economic development and future growth.
Administrative simplification is within your remit. What will the first concrete measures be to make life easier for Brussels businesses ?
That is correct, but initially we are focusing on our own administrations. That is where the greatest room for improvement lies today. By simplifying our internal workings, the quality of service to the end user will automatically improve in a second phase.
My first priority is therefore the merger of the transversal service that falls under my remit. Beyond that, we will work on a thorough simplification of our permit system. The goal is clear: greater speed, shorter turnaround times, and a single central point of contact. Artificial intelligence will also play an important role in this, to accelerate processes and make services more user-friendly.
One thing I, for instance, have never understood is that there were two separate administrations handling Renolution premium applications, and they did not work together sufficiently — one had already cleared its backlog, the other had not. That is hard to explain and needs to change. It must once again be clear to people who to turn to for what.
Boris Dilliès stated in our columns that "Brussels is back." What is your message today for entrepreneurs and investors who are still hesitant about Brussels' economic future ?
You ain't seen nothing yet! Brussels is fully ready to become once again the growth engine it is meant to be. The WAT Incubator recently opened its doors in Brussels — an innovative hub for startups and young entrepreneurs. By 2027, the full WATcampus will be completed, just as Wintercircus in Ghent became a vibrant hub for creativity and innovation. Think of Brussels today as a stock trading below its potential: this is the perfect moment to invest. In three years' time, you will regret not having done so, because the city is poised for exponential growth and is set to become a centre for innovation and entrepreneurship.