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Subject

Belgium's elections.

Significance

Belgium's federal elections will take place on May 26. With polls forecasting Flanders' nationalist New Flemish Alliance (N-VA) to emerge as the largest party, a right-wing coalition is the most probable outcome. However, protracted coalition talks are inevitable and will worsen the policy inertia ongoing since December.

Impacts

Belgium is unlikely to meet its NATO defence spending obligations as all possible coalitions will have other spending priorities.

Belgium's caretaker government may still be in place on October 31, limiting its abilities to respond to Brexit-related issues.

Strong results for the N-VA may affect the degree to which Belgium adheres to the UN migration pact.

The implementation of climate taxes combined with a slowing economy may increase the scope for protest marches.

Belgium must wait for a newly elected government to use its own investments and lower taxes to boost the country's slow-growing economy.

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