Inter-municipal corporations in Belgium, tasked with critical public services like water supply and sewer management, face mounting financial challenges. Vivaqua, a water and sewer company serving Brussels, exemplifies these struggles, with its debt surging to €1.17 billion. The financial woes stem from aging infrastructure, rising costs, and expanding responsibilities due to EU mandates like the Blue Deal.
These entities, legally exempt from bankruptcy, must rely on restructuring, external financing, or municipal bailouts. However, municipalities themselves often grapple with fiscal constraints, creating a cycle of financial instability. The governance and oversight of inter-municipal corporations also face scrutiny, as their hybrid legal status and complex operations challenge effective regulation and accountability.
This article, written by Marie DeCock (PhD, Hasselt University, Maastricht University, FWO Research Foundation Flanders) and first published on De Tijd on 25 January 2024, argues for a fundamental reform of inter-municipal corporations to adapt to modern governance needs. It calls for stronger financial supervision, clearer legislative frameworks, and potentially transferring heavy service responsibilities to regional authorities. Modernizing these structures is essential to prevent financial crises and ensure sustainable service delivery.
The link to the full article is available [here].