Moody’s has downgraded Belgium’s sovereign credit rating from Aa3 to A1, citing concerns over growth prospects, fiscal deterioration, and rising public debt.
The downgrade reflects doubts about the government’s ability to implement sufficient measures to stabilise debt levels, according to the credit rating agency.
While the Arizona coalition government introduced ambitious structural and budgetary reforms in 2025, those measures are deemed insufficient to counter the pressures from higher interest costs, defence spending, ageing demographics, and declining revenues.
This change follows a rating downgrade by Fitch last June, which Moody’s had initially resisted.
Prime Minister Bart De Wever reacted to the news, saying it highlights the urgent need for additional efforts to restore international confidence in the country’s finances.
For months, the government has struggled to agree on structural measures to address public finances. Some fiscal reforms agreed upon in December have faltered, others have been postponed, and upcoming budget rounds are expected to face significant challenges.
Adding to the turmoil, internal disagreements within the federal government over energy-price relief measures have left the administration paralysed since Friday.
