Flemish Government hopes changes to funding structure will encourage smaller municipalities to merge

The Flemish Government is changing the way it funds municipal mergers to ensure that the smallest municipalities in our region benefit if they decide to merge with their neighbours. The daily ‘De Standaard’ reports that by 2029 it should have become clear how many municipalities intend to merge as a result of the changes.

In the main municipalities take the decision to merge in order to make local government more efficient and financially sustainable. By merging with 1 or more of their neighbours municipal authorities are able to pool resources and deploy staff more efficiently.

The previous framework was particularly beneficial to large municipalities. Antwerp received 50 million euros for its merger with Borsbeek in 2025, even though the city’s population increased by just 2% as a result.

Under the new proposals municipalities with a large population that merge with their smaller neighbours will receive less money. Meanwhile, the merger of smaller municipalities will be encouraged. All municipalities that are merging will be given a lump sum of 1 million euros to cover transition costs, such as for IT or personnel. As things currently stand, the financial benefits of a municipal merger are not immediately noticeable.

Merged will also see their debt transferred to the Flemish Region to the tune of up to 500 euro/inhabitant. This is 100 euro/inhabitant more than the current upper limit. The upper debt transfer limit will decrease for municipalities with more than 40,000 inhabitants.

Flemish Interior Minister Hilde Crevits (Christian democrat) is keen to stress that any mergers will be voluntary. The Flemish Government has set aside 150 million euro to pay for a new round of mergers but has set no targets for the number of mergers it hopes will take place.