Belgium is a very strange Country. Eleven millions of habitants live in a territory of 11 thousands km2, organized in three Regions and three Communities, with three official languages, Flemish, French and German.

Atomium - The symbol of Brussels

The internal contrast between Flanders, the richest part of the Country and Wallonia has blocked the political and institutional life in the last years. In 2011 Belgium reached a new world record regarding the absence of an official government: in fact, after the election of June 2010, the political forces couldn’t get an agreement to create a new government.
For 18 months Belgium was led by a caretaker government, beating the previous record held by Iraq. Anyway, even with limited budget, the government performed well and the economy of the Country could have an incredible +2% of growth in 2010-11.

But Belgium could shock us also with another miracle. In 1993 its public debt was 138% of GDP: Belgium was the Country with the highest debt in EU. Fourteen years later, in 2007, the debt reached the impressive number of 84%. Even if in the last years the debt increased, it didn’t exceed the limit of 100%.

How was it possible?

First, a fiscal reform has been implemented. The aim has been the simplification of the taxation and the increase of the fiscal rates. Second, all the reforms put in practice from the Government have been realized without any additional cost for the public balance. More income and a fix amount of expenses have brought a surplus in the state balance allowing a stable decrease of the debt.

Of course this is not a result reachable from every Country. Belgium is located in one of the richest area in the world and it could also take benefit from its German neighbor. But it is a symbol of pride for such a complex Country, that has to face many internal contrasts.  

To understand more about this strange and interesting Country, I advise you to watch this funny video – Belgium for dummies @  http://youtu.be/QlwHotpl9DA.