A federal state
Belgium is a constitutional, parliamentary monarchy. However, since February 3, 1994, it has become a federal state, with central government, communities and regions each having their own powers. The reigning monarch is King Philippe, married to Queen Mathilde. Legislative power lies with the King and Parliament. Executive power lies with the federal government, presided over by the Prime Minister. Judicial power lies with the courts and tribunals. The parliamentary system is bicameral: Chamber of Deputies and Senate. Voting is compulsory, and seats in the various parliaments are allocated on the basis of full proportional representation. Each of Belgium's 10 provinces has its own administration, whose representative and decision-making body, the Provincial Council, is elected by universal suffrage for a six-year term.
The administrative and linguistic division
Belgium is made up of three linguistic communities (Flemish, French and German), three administrative regions (Flemish, Walloon and Brussels-Capital) and ten provinces. Voted between 1873 and 1963, the language laws concerning the use and recognition of French, Dutch and German as official languages of Belgium were an important step in the reform of the state. But these language laws were not enough, and constitutional reform became increasingly inevitable. Successive reforms took place in 1980, 1988 and, finally, 1993. The latter established the new federal state.
The competences of the communities are defined in the fields of education, politics, health and scientific research. In addition, the regional authorities operate in the fields of economics and self-government. They each have a council and a government with authority in the fields of employment, agriculture, ecology and trade. Finally, at the highest level, the state governs the federal authority, responsible for foreign policy, defense and justice (among other things).
The rise of the Flemish far right to power
On May 26, 2019, among the parties traditionally in power, the separatist N-VA remains in the majority, even though it is in decline, while the PS achieves its worst ever score in Wallonia, while remaining the leading French-speaking party. The election was marked by the breakthrough of the even more separatist Flemish far-right party Vlaams Belang, which became the country's second political force and the third largest party in the House of Representatives, with 12% of the vote and 18 seats. On the French-speaking side, the radical left-wing PTB/PVDA party gained 8.6% of the vote and went from 2 to 12 representatives in the House. The French-speaking ecologists (Écolo) doubled their score, while their Dutch-speaking allies (Groen) made more measured progress, to become the leading party in Brussels. Together, they took 12.3% of the vote and 21 seats. The Christian Democrats and Liberals took 8.6% and 8.9% of the vote respectively, for 12 seats each. The political bipolarization between an increasingly right-wing Flanders and an increasingly left-wing Wallonia continues to widen the gap between the two Belgian regions. This will make it difficult to form a federal government, and could lead to another major political crisis.
The next federal elections will be held in June 2024, and the advance of the far-right Vlaams Belang party is prompting the current three-party Flemish government (N-VA, CD&V and Open VLD) to reflect on the possibility of renewing its coalition to form a "broad conservative people's party".
A disparate regional economy
Until the middle of the 19th century, the Belgian economy was strongly agrarian. The coal deposits in Wallonia made it possible to develop heavy industry during the industrial revolution. Today, Flanders is doing well, with both a thriving primary sector and a successful goods and services economy. Wallonia, after a period of closure of its steel and mining industries for several decades, is only now beginning to recover and benefit from stimulus packages.
The main resources
Agriculture in Belgium now employs only 2% of the working population and contributes 1.4% of the country's GNP (gross national product). It is concentrated on large farms, the majority of which (63%) are engaged in livestock production, which is export-oriented. The pork sector, which has a large surplus, accounting for 23% of total sales, is concentrated in Flanders, with many intensive farms: 95% of the livestock and 87% of the farmers. With 24.1%, the horticultural activity takes the second position of the agricultural sector.
Industry employs 25% of the working population and contributes 25.6% of the country's GNP. For a long time it was dominated by the heavy sectors (mining, steel, automobile and chemicals), which were mainly concentrated in Wallonia. Today, the balance of economic poles has been reversed. Wallonia is seeking to restructure its former activities, while Flanders, which has a diversified secondary sector (metallurgy, chemicals, plastics, textiles and specialized agri-food industries), has also been able to take advantage of the emergence of biotechnologies, information technology and its derivatives (graphics, multimedia, etc.).
Services employ nearly 74% of the working population and contribute 3/4 of the country's GNP. Belgium's central European position is its major economic asset.
In 2020, the Belgian economy has logically contracted due to the Covid-19 crisis, with its GDP falling by 6.3% to $515 billion, according to the World Bank. Growth picks up in 2021 with the arrival of vaccines and a gradual recovery of the European economy.
Covid, war in Ukraine and inflation
After two years of Covid, during which Belgium did not fare too badly despite the numerous problems encountered in managing the pandemic (high vaccination rates, less severe confinements, etc.), the country seemed well on the way to economic recovery. The outbreak of war in Ukraine quickly put an end to this optimism. Like all European countries, energy prices (gas, following the post-Covid recovery and the end of Russian gas supplies, and electricity) rose sharply, bringing with them inflation not seen since the 1980s (in excess of 10%), triggering an economic and social crisis. The consequence of this pressure on the energy sector? The government, which had agreed to phase out nuclear power by 2025 (Belgium has a number of power plants), had to battle both the coalition parties and the plant operator to extend two reactors for 10 years, much to the dismay of environmentalists for whom this was an historic battle.
