Belgium's regional economic gap persists, prompting state reform talks

Analysts note that Belgium’s three main regions – Flanders, Wallonia and Brussels – continue to show stark economic differences. Since the 1950s, Flanders has grown more than twice as fast as the other regions, leading to higher employment (over 77 % of 20‑64‑year‑olds) and lower poverty risk (11 %). In contrast, Wallonia records about 68 % employment and a 20 % poverty risk, while Brussels shows 64 % employment and a 34 % poverty risk.

The widening gap fuels calls for a new state reform, deemed necessary to address the federal budget challenge posed by rising pension, health‑care, interest‑payment and defence costs. Policymakers argue that a greater regional contribution will be essential for a more balanced and performant economy across Belgium.