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| Capital city: |
Brussels |
| Surface area: |
33,000 sq km |
| Population: |
10.7 million |
| Official language(s): |
Dutch, French, German |
| Government: |
Constitutional, hereditary monarch |
| Head of State: |
H.M. King Albert II |
| Head of Government: |
Prime Minister Mr Yves Leteme |
| Australian exports to Belgium: |
A$1,452 million |
| Australian imports from Belgium: |
A$1,617 million |
| Belgium's principal export destinations: |
Germany, France, Netherlands |
| Belgium's principal import sources: |
Netherlands, Germany, France | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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The European Council and the European Commission are based in Brussels and their presence ensures that the title of ‘the capital of Europe’ is bestowed on the city. The North Atlantic Treaty Organisation (NATO) also has its headquarters here, as do hundreds of multinationals. With its central location Belgium is also considered a transit and distribution centre for other European Union member countries.
In the last 20 years the economy has been transformed with industries such as chemicals, light engineering, food processing, and the services industry significantly increasing in worth, while coal and steel have declined in importance.
Since 1993 the government has privatised much of the public sector.
Belgium adopted strict fiscal policies to qualify for membership of the European Economic and Monetary Union (EMU) in 1998 (along with the 11 other first wave Member States).
The current government is committed to cutting employer’s costs, reforming the tax system and creating jobs to ensure Belgium remains competitive. Belgium is pro-foreign investment and international trade. More than two thirds of Belgium's GDP derives from foreign sales, one of the highest percentages among industrialised nations.
Key economic indicators and statistics for 2008*:
- GDP – US$507.1 billion
- GPD per capita – US$47,244
- Real GDP growth – 1.4 per cent
- Inflation – 3.1 per cent
*IMF/EIU forecast
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
Employers’ costs are among the highest in the EU, while productivity levels are among the highest in the world. Almost one-fifth of the labour force has a third level education and works in a science and technology occupation. The most economic growth since World War II has been in the Flanders region, and as a result, unemployment in Wallonia is usually about 10 percentage points higher than in Flanders.
In Brussels, there are more than 2000 international companies, 160 diplomatic representations, and 1400 international organisations. The main employers in Belgium are:
- The manufacturing industry
- The services sector (eg. finance, insurance, real estate and business)
- The heavy industry (eg. mining and quarrying, power and construction)
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Belgium was founded in 1831, and is a constitutional, hereditary monarchy. Since 1993 the Head of State has been King Albert II.
Belgium unites the Dutch-speaking Flemish and the French speakers of Wallonia and Brussels. There have long been tensions between the two, so in 1995 Belgium was declared a federal state and divided into three linguistic communities (French, Dutch and German speakers) and economic power was granted to three regional governments (Flanders, Wallonia and the Brussels Capital Region). Approximately 35–40 per cent of public expenditure is now controlled by the sub-national governments.
The current government took office on 20 March 2008 when Yves Leterme was sworn in as prime minister. The government form part of the Dutch speaking Christian Democratic and Flemish party. Parliament is elected for a maximum four-year term.
Mr Leterme leads a coalition government including two Flemish and three francophone parties and promised to work for agreement on constitutional reform, including the further devolution of powers to the regions. Mr Leterme was unable to secure agreement on reform proposals within a self imposed timeframe and on 14 July tendered his resignation to King Albert II. The king rejected the prime minister’s resignation and established a panel of three senior politicians to examine how a new phase of negotiations could make meaningful progress. Regional elections are scheduled for June 2009.
(Source: Department of Foreign Affairs and Trade - Country brief)
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Trade relations and statistics
Since 1922, Belgium and Luxembourg have shared the Belgium-Luxembourg Economic Union (BLEU), when the customs frontier between the two was abolished. Belgium is also a member of the European Union (EU) and therefore has strong trading ties with its EU partners, and in particular Luxembourg. The two countries have relatively open market economies (aside from agriculture) and their currencies are tied on a one-to-one parity.
Belgium also maintains close economic and cultural ties with its former African colony, the Republic of the Congo, devoting about 30 per cent of its aid budget to it.
Major Australian exports to Belgium (2007):
- Coal – A$275million
- Nickel – A$245 million
- Zinc – A$204 million
- Lead ores and concentrates – A$188 million
Major Australian imports to Belgium (2007):
- Passenger motor vehicles – A$338 million
- Medicaments (including veterinary) – A$155 million
- Medicinal and pharmaceutical products – A$92 million
- Pearls and gems – A$64 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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