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Significance
The coalition, headed by Prime Minister Alexander De Croo, consists of seven parties from Green, liberal, socialist and fiscally conservative backgrounds. The main challenges will be finding a united and sustainable approach to handling the COVID-19 crisis and reversing support for Flemish nationalism.
Impacts
The second wave of COVID-19 restrictions make a strong economic recovery in the fourth quarter unlikely.
Owing to budgetary constraints, defence spending, currently below 1% of GDP, will not get close to the 2% NATO target by 2024.
The absence of the New Flemish Alliance (N-VA) from the coalition will make it easier for Belgium to agree to EU proposals on immigration.
Keywords:
Belgium,
EUR,
economy,
politics,
social,
fiscal,
government,
health,
party,
policy,
regional,
defence,
election,
employment,
infrastructure,
pensions,
population,
security,
transport
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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