Wallonia's government finances are becoming increasingly unsustainable, with the public debt of Belgium's French-speaking region set to double by next year compared to 2019, l'Echo reports.
According to figures drawn up by Les Engagés – a centrist opposition party in the Walloon Parliament – the region's debt is on track to hit €43 billion in 2024, almost double the €23 billion of 2019.
The forecast comes at a time when numerous economists and investors have expressed deep concerns about the general health of Belgium's public finances. Belgium's federal debt-to-GDP ratio and budget deficit are currently amongst the highest in the EU, leading the EU and the IMF to openly criticise the country's fiscal profligacy in recent months.
An unsatisfactory explanation
The Walloon Government argues that its swelling debt is the result of a series of unprecedented crises over the past few years, including the floods in 2021, the Covid-19 pandemic, and soaring energy prices catalysed by Russia's invasion of Ukraine last year.
But for the head of Les Engagés in the Walloon Parliament François Desquesnes, this explanation is far from convincing: "These crises have burdened the budget by €4.7 billion," he told l'Echo. "Of the remaining €15 billion, €6 billion have been spent on the [Covid-19] stimulus plan and €9 billion are simply inexplicable."
Concerns about Wallonia's public finances will likely be compounded over the coming months, as the European Central Bank (ECB) continues to hike interest rates in its efforts to curb rampant inflation across the eurozone.
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A further, longer-term worry is Wallonia's ageing population, which is predicted to see regional pension expenditures double over the course of this decade, from €808 million in 2020 to €1.6 billion in 2030.
According to Les Engagés MP André Antoine, the current state of Wallonia's finances mean that without strong and immediate action, deep cuts to the region's public spending will be necessary – prospects that will only exacerbate the situation for many of region's inhabitants who are already struggling with a profound cost of living crisis.
"Without putting the Walloon finances in order, there is a risk of suffering a period of austerity during the next parliament," Antoine said.
