Flemish government
The Council of State does not like the Flemish premium for electric cars. And Flemish Minister of Mobility Lydia Peeters (Open VLD) has little room to maneuver to adjust her decree.
You can receive up to 5,000 euros in premium on the purchase of an electric car, as long as the car costs less than 40,000 euros. But you have to be quick, because Flemish Minister of Mobility Lydia Peeters (Open VLD) only has 20 million euros to spend in 2024. According to the Council of State, the entire measure is therefore very shaky, because equal treatment of every Flemish person can be called “first come, first served” difficult.
The Flemish government had already warned that anyone who comes knocking at a later time might receive a lower premium if demand was high. And the Council of State doesn’t like that either, again because of the principle of equality. The announcement has created “inevitably legitimate expectations among interested buyers.” If the government suddenly gives less premium, this can be legally challenged.
Headaches
So it’s a headache for Minister Peeters. She remains optimistic and says that she will come up with an amended decision by Friday’s Council of Ministers, which will respond to the comments of the Council of State. She doesn’t have much room to maneuver. The budget for 2024 has been determined, the Flemish government does not want to issue additional credits. If she needs more money, it will have to come from her own powers and there is certainly no margin for that. The government partners are therefore very curious about what proposal Peeters will come up with.
The premium has been controversial since its announcement. With the budget for 2024, Flanders can support the purchase of 4,000 electric cars. A stampede was written in the stars. Especially because the car brands immediately started to respond to it. Volkswagen, Renault and even Tesla reduced the price by a few thousand euros, so that their models fell neatly below the 40,000 euro limit. In January 2024 alone, private individuals purchased 1,200 electric cars. Three times as much as in January 2023, according to figures from mobility federation Traxio. That is without non-profit organizations or sharing platforms, which can also count on the premium.
Middle class
The design itself was also criticized. The Mobility Council, the advisory body of the Flemish government itself, has already noted that the measure would become “a measure for nothing”. It gives people who could already afford an electric car a financial boost. A gift for the middle class. You should not expect a solution to the traffic jams, was the opinion of Bond Beter Leefmilieu and Treintrambus.
Originally, the counter where you could apply for the premium was supposed to open in January. Because the regulations were not ready in time, the target is now mid-February. But then Peeters must get the green light from the Flemish government, preferably with a measure that does not open the door to procedures.
