April is the cruellest month and the forecast looks particularly bleak for Belgium's economy. Long castigated for fiscal negligence, how much longer Belgium can continue its programme of public spending has been questioned with growing alarm with doom-mongering from each new finance report.
The latest comes from the IMF, whose 2023 global outlook spells out the scale of the problem: Belgium is on course for a budget imbalance of -5.8% of GDP in the next five years – far worse than any other EU state. With national elections around the corner, this will surely be the hot topic among would-be premiers (if they're not sidetracked by the "woke" debate).
As with most major policy changes, a good indicator of Belgium's direction can be seen in its neighbours. So when it comes to dealing with the deficit, don't be surprised to see Belgium tweak the pension system à la France. There has already been movement on this front and though it won't bring relief, the struggle to provide pensions and care to an ageing population is not exclusive to Belgium.
Across Europe, retirement age is increasingly under the spotlight, though critics often call attention to other sectors that might replenish the public purse – often multinational corporations that national regulators have been reticent to upset. Whilst Belgium has recently introduced tighter tax laws for large companies operating in the country, these alone will barely dent the deficit.
Meanwhile, the costly automatic wage indexation that is something of an anomaly (only Cyprus and Luxembourg have similar systems) has long been attacked by business organisations as a blow to Belgium's competitiveness – driving investment abroad where labour is cheaper.
It's hardly coming out of the blue but news like this makes sitting in the Federal Government an unenviable position...
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1. Belgium's budget burden: IMF forecasts tiny economic growth
The economic outlook for Belgium is bleak. According to new statistics published by the International Monetary Fund as part of its 2023 World Economic Outlook, economic growth in Belgium will be one of the lowest in the eurozone. Read more.
2. 'By attacking me, you attack the institution': Michel defends 'lavish' travel expenses
Former Belgian Prime Minister and current President of the European Council Charles Michel has vigorously defended himself against criticism of his "lavish" travel expenses and suggested that attacks against him are essentially attacks on the European Council as a whole. Read more.
3. Anger and dismay: University of Kent closes flagship Brussels campus
Twenty-five years after the Brussels School of International Studies (BSIS) in Etterbeek first welcomed students, its sudden closure was announced last month leaving students and staff in the dark about their academic future. Read more.
4. American paratroopers get tangled in tree in Flanders
US paratroopers found themselves in an embarrassing situation in Flanders on Wednesday. During a paradrop military exercise at the Hechtel-Eksel military base in the province of Limburg, in Flanders, five paratroopers found themselves stuck in a tree. Read more.
5. Nearly 600 violations since Brussels imposed controversial taxi plan
Nearly 600 violations of the new Brussels taxi plan were registered since the Capital Region introduced the legislation last October. Most common was the lack of a certificate of professional competence or a trip sheet, figures from Brussels Mobility show. Read more.
6. First Nocturnes: Brussels museums open doors tonight
Brussels museums will open their doors on the evening of Tuesday 13 April as part of the first day of the annual Nocturnes event, starting with a vernissage along the Canal. Read more.
7. Hidden Belgium: The vanished Culemborg palace
The massive Albert Barracks are located near the Square du Petit Sablon in Brussels. Three entrances built with massive rusticated stones lead into the former parade ground. A plaque next to the first door commemorates the soldiers from this barracks who died in the First World War. Read more.
