Council of State sees problems with Flemish premium for the purchase of electric cars | Domestic

To reduce CO2 emissions from traffic and encourage the purchase of zero-emission cars, the Flemish government announced last year a premium for new or second-hand electric cars.

In 2024, this would amount to 5,000 euros for a new car with a maximum purchase price of 40,000 euros (including VAT) and 3,000 euros for a second-hand car. The premium can be awarded if the electric car was ordered after September 25, provided that it was only registered from January 1, 2024.

The government has provided a budget of 20 million euros for the measure. This means a maximum of 4,000 (new cars) to 6,666 (second-hand cars) requests. However, according to the Council of State, it is highly questionable whether the number of applications will not be higher.

The fact that the Flemish government applies the principle of ‘first come, first served’ is, for the Council of State, at odds with the principle of equality. According to the Council, criteria such as the date of notification or the date of approval are “not a pertinent criterion for which there is a sound justification that is compatible with the principle of equality”. The same also applies if the date of purchase or registration of the vehicle is chosen as a criterion.

The Flemish government has already taken into account an insufficient budget to some extent by stating that the premium amount could possibly be reduced with an interim evaluation, which would therefore mean that applications would lead to lower premiums from certain points in time.

However, the Council of State also sees problems there.

The Council is of the opinion that the announcement “inevitably creates legitimate expectations among interested buyers”. As a result, the government risks legal challenges if more applications are submitted than the budget allows. Even if timely action is taken and the premium amount is adjusted downwards, the Council sees problems with the principle of equality and the principle of trust. “Although this reduction avoids that no premium is awarded at all for a later application, there remains a difference in treatment between the applicant who receives the reduced premium amount and the applicant who receives the premium amount determined in the designed scheme,” it said.

In a response, Stijn Bex van Groen calls it “devastating” advice. “This policy is contrary to the principle of equality and will create a sense of injustice among many citizens. The Flemish government serves some citizens better than others,” he said.

According to the Flemish Member of Parliament, the Flemish government can now do two things: either increase the budget so that every applicant receives a subsidy, or develop a system that respects the principle of equality. However, according to Bex, the first will not happen “since there was already little enthusiasm within the government for this gift policy of Minister Peeters”. However, according to the Council of State, developing a system that respects the principle of equality does not seem to be an easy task.

“Instead of being an election stunt for Minister Peeters, this subsidy will become a pebble in the shoe of this entire Flemish government. Unfortunately, a lot of expectations have been created in the meantime. In addition to being a bad policy choice, this premium now also becomes a file with which the Jambon government further undermines confidence in politics,” Bex concludes.