Flemish Subsidies for Electric Cars: A New Approach

Flemish Subsidies for Electric Cars: A New Approach

14 February 2024

Flemish Subsidies for Electric Cars: A New Approach

Commitment to Electric Mobility

The Flemish government has taken a new step in its commitment to electric mobility by allocating an additional budget of 6 million euros. This means there are funds for 1,200 additional new electric cars for private individuals. If this budget is exhausted, further allocations will be considered. The subsidy amounts remain unchanged: 5,000 euros for a new electric car under 40,000 euros, or 3,000 euros for a second-hand electric car of the same price.

Balance between Fairness and Sustainability

Achieving a compromise to keep the subsidy fair for all citizens, while keeping costs in check to satisfy coalition partners, was a challenge for Flemish Mobility Minister, Lydia Peeters (Open VLD). Initially, the proposal was to only remove the subsidy for 2026, allowing Flemish individuals to still receive 3,000 euros, but the agreement was only reached after also removing 2025 (with a subsidy of 4,000 euros per car) from the scheme.

Responsible Financial Management

Energy Minister, Zuhal Demir (N-VA), emphasizes that this measure releases additional financial resources to meet the growing demand. The aim is not to burden the next administration with unnecessary financial obligations. Demir had previously indicated that compromises would be necessary to maintain the subsidy.

Adjustments in 2024

Unfortunately, this means that the Flemish government has decided to only disburse the subsidies in 2024. This follows a negative opinion from the Council of State regarding the adequacy of the initially allocated 20 million euros. This allocation would have only subsidized 4,000 new electric cars (at 5,000 euros each) and 6,666 second-hand electric cars (at 3,000 euros).

These adjustments aim to make the electric car subsidy scheme more efficient and better support the growing demand, in line with broader goals of sustainable mobility and responsible financial management.