Why did S&P downgrade Belgium's credit rating?

S&P downgraded Belgium's credit rating to AA- due to significant fiscal challenges, including a widening budget deficit and projected increases in net government debt.

What is Belgium's projected government debt?

Belgium's net government debt is projected to increase to 109% of GDP by 2029, with corresponding increases in interest payments.

What did the Belgian Prime Minister say about the country's finances?

Prime Minister Bart De Wever acknowledged Belgium's fiscal failings, stating that the country has the worst public finances in Europe and must change its course.

Home / Business and Economy / Belgium's Finances Bleak: Worst in Europe, Says PM

Belgium's Finances Bleak: Worst in Europe, Says PM

25 Apr

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Summary

S&P downgraded Belgium's credit rating to AA- due to large budget deficits.
Net government debt is projected to rise to 109% of GDP by 2029.
Prime Minister acknowledged Belgium's fiscal failings as the worst in Europe.

S&P Global Ratings recently downgraded Belgium's credit score by one step to AA-, marking the second such reduction in a week. This action highlights Belgium's substantial fiscal challenges, including a widening budget deficit projected for 2025 and a slow consolidation plan for 2026-2029.

Analysts project Belgium's net government debt to climb to 109% of GDP by 2029, accompanied by increased interest payments. Prime Minister Bart De Wever acknowledged these fiscal failings, describing Belgium's public finances as the worst in Europe. The country's debt growth rate is also forecast to be the fastest among advanced economies, excluding the U.S.