Amid Belgium's increasing debt ratio, the Federal Debt Agency does not fear a "snowball effect" endangering public finances, according to the federal organisation's annual report.
Last week, Pierre Wunsch, Governor of the National Bank of Belgium, sounded the alarm over Belgium’s financial situation, saying that worsening budget conditions could leave the country vulnerable to future shocks.
In 2024, Belgium’s debt ratio stood at 104.7% of GDP, up from 103.2% in 2023 and 102.7% in 2022, ranking fourth in the Eurozone behind Greece, Italy, and France. The Eurozone average is 87.4%.
For only the second time since 2010, interest charges have risen, reaching 2.26% of GDP.
Despite these figures, the Director of the Debt Agency, Jean Deboutte, urged for calmness. "There is no snowball effect as interest rates remain below the nominal growth of the debt," he said.
According to Deboutte, "the internal debt dynamics are still positive, even though the budget deficit dampens the outlook."
He pointed to Belgium’s strong ability to meet financing needs in financial markets as evidence, stating that "the demand for Belgian bonds remains very high."
