Wallonia’s debt is projected to surge by €10 billion between 2024 and 2029, costing the region €982 million in interest charges by 2029, according to a report by L’Echo, based on research by the University of Namur's Regional Economics and Economic Policy Centre (Cerpe).
The researchers predict that Wallonia’s debt will increase from €28.3 billion in 2024 to €38.7 billion in 2029.
Similarly, interest charges are expected to increase significantly.
By the close of 2024, Wallonia will have spent €522 million paying interest on its debt. However, by 2029, this figure is projected to shoot up to €982 million, representing nearly 6% of its estimated receipts of €17.5 billion that year.
This debt hike has an impact on another key variable: the debt-to-revenue ratio. Cerpe’s projections indicate that this ratio will reach 220% by 2029.
According to the office of Wallonia's outgoing Budget Minister, Adrien Dolimont, “debt sustainability is defined as being below a debt-to-revenue ratio of 180%.”
