The budget for premium electric cars has already run out

The budget for the Flemish premium for an electric car is not sufficient, according to figures requested by Flemish Member of Parliament Sofie Mertens (CD&V). Minister Peeters is committed to ensuring that everyone who sees their application approved this year will be paid.

Anyone who buys a new or second-hand electric car in 2024 will receive a premium from the Flemish government of 5,000 euros or 3,000 euros respectively. Minister of Mobility Lydia Peeters (Open VLD) introduced this measure when drawing up the budget in September 2023.

The Flemish government had initially reserved 20 million euros for this year and left an opening to expand this with 6 million euros from climate resources. But that budget will not be sufficient, according to figures requested by Flemish Member of Parliament Sofie Mertens (CD&V) and reported by the Belga news agency.

On April 18, there were 4,980 registrations of new electric cars and 932 of second-hand cars, says Mertens. If all those applications are approved, 27.7 million euros will be needed to pay out all premiums. Although it may not stop there. Applications can still be submitted until the end of this year. At the current pace, 28 applications are added every day.

‘The budgets provided will simply not be sufficient. Where will the minister get those extra budgets?’, says Mertens. ‘Will there be further savings on De Lijn, on student transport in special education or on road safety? A reliable government must keep promises made.’

Minister Peeters disputed on Radio 1 on Monday morning that the budget of 20 million has already been exceeded. ‘The money has not run out yet, but we do see that there are many requests. Any requested premium that is eligible will be paid out this year.’ If necessary, the Flemish government will provide additional resources, in addition to the 20 million euros that were allocated, she says.

According to Flemish Minister of the Environment Zuhal Demir (N-VA), Peeters will have to find that money from herself or her liberal colleagues. ‘Fortunately, we were able to limit this stupid gadget of the Liberals to one year,’ she writes on X. ‘However, that is not a free pass for ministers to simply ask for extra money. The agreement is that the liberal ministers will reallocate their own resources. I assume that that agreement will be respected.’

Peeters does not seem to want to find money in mobility. She denies that she has made savings on De Lijn and on student transport in special education. She will not save ‘a euro’ on road safety, it is said.

Peeters says he is satisfied with the boost in the number of registered electric cars. ‘In addition to focusing on cycling infrastructure and public transport, the transition to zero emissions in passenger cars is important to achieve our CO2 targets.₂reduction and improve air quality.’

When the budget runs out, this means that private individuals have already purchased around 5,000 electric cars in Flanders. That is less than 3 percent of the 175,000 new registered cars in our country this year.

In addition to private individuals, non-profit organizations and providers of shared mobility can also apply for the premium. It applies to new cars up to 40,000 euros and can be requested until December 31. Anyone who purchases a car that day and immediately applies for a premium is eligible for the subsidy.