Belgium: Coalition Agreement Could Pave the Way for Gradual Reduction in Budget deficit

As Outlined by the Government Coalition, The Necessary Adjustment Requires Political Sensitive Reforms of the Welfare System, Which Accounts For More than, Half of Gover Eing Population, Projected to Rise from 20% of GDP in 2000 to 30 % by 2050.

Like Similarly-Rated European SuchiGns Such as France (Rated by Scope Aa- With A Stable Outlook), ReFORMING SOCIAL PROTECTION Ion and in Parliament Could Slow The Pace of Reform.

Assuming Modrate Fiscal Reduction, Belgium’s Budget deficit will Average Avery 4.8% of GDP Over 2025-29, Resulting in An Increase In Debt To GDP to AROUND 114% GEST Projected Increases in the Euro Area.

Economic Growth and Favourable Debt Profile Remain Support of the Credit Rating At Same Time, Belgium Has Relatively Robust Economic Momentum with Real GDP Growth Project at 1.2% in 2025.

Finally, A Long Average Maturity for The Sovereign’s Debt of 10.4 Years, Compared With An Average of 8.5 Years for Euro Area Sovereigns, And Stable Net Interest Payments iFicantly Below Those of France