Tensions between Belgium's regions.
Belgium’s new minority government led by Prime Minister Sophie Wilmes was sworn in on March 17 for an initial period of 3-6 months to combat COVID-19. Beyond this immediate challenge, the main issue will be Belgium’s future as a federation, as significant disagreements between Flemish and Walloon parties could widen. These may also compromise future negotiations for a majority coalition government once the health crisis starts to subside.
Belgium will strongly advocate extending the Brexit transition period given the economic implications of COVID-19.
The budgetary impact of the crisis makes it less likely that Belgium will meet NATO's 2% of GDP rule for defence spending in coming years.
The current economic downturn will likely push Belgium’s sovereign debt beyond 100% of GDP.
