granting transitional compensation to municipalities disadvantaged by the new financial equalization system - Principle

1. Underprivileged municipalities affected by the transition to the new equalization system established by the Law of June 4, 2024, on intercommunal equalization [A] receive a transitional compensation.

2. The transitional compensation is based on a comprehensive assessment estimating the evolution of equalization charges between 2024 and 2025. The estimation is based on data from the 2022 fiscal year.

1. The transitional compensation is granted

a. at 100% for the years 2025 and 2026;

b. at 75% for the year 2027;

c. at 50% for the year 2028;

d. at 25% for the year 2029.

1. The beneficiary municipalities of the transitional compensation and the amounts of the latter (at 100%) per municipality are as follows

2. In the event of a merger of municipalities, the amounts provided for the beneficiary municipalities will be allocated to the new municipality.

1. Transitional compensation is financed by the State in accordance with Article 17 of the Intercommunal Equalization Act [A].

1. This decree shall enter into force on January 1, 2025.

2. Its entry into force is subject to the entry into force of the law of June 4, 2024, on intermunicipal equalization.

3. The Council of State is entrusted with the execution of this decree. It shall publish the text thereof and set the date of its entry into force, in accordance with paragraph 1.