Country Governance

To compete, Belgium needs a simpler and more efficient governance model

Gauthier Masco, Policy Assistant, AmCham Belgium

The enormous budgetary impact of the COVID-19 crisis also clearly indicates that a “business as usual” approach to government spending is no longer sustainable. The government deficit will balloon to 11.2% of GDP in 2020 and public debt is expected to reach 118.6% of GDP by 2022, according to the European Commission’s latest forecast. Clear budgetary choices will need to be made. Focus should go to the efficiency and affordability of spending.

Our ambition is for Belgium to achieve a top ten position in the WEF’s Global Competitiveness Index by 2030, up from 22nd today. To climb the ranks, Belgium’s governance structure will need to become simpler and more efficient. In today’s context, simplicity is key to attract foreign investment and achieve sustainable economic growth, which is needed to successfully jump over the stumbling block created by the COVID-19 pandemic.

As we recommend in our 2020 Priorities for a Prosperous Belgium, urgent, thorough and comprehensive remediation of malfunctioning state structures and administrations is required. To manage upcoming challenges and put the state at the service of citizens and companies, we need to simplify the way the country is organized and governed. This, in turn, will result in a more efficient and prosperous Belgium.

AmCham Belgium recommends

Simplify the way Belgium is organized and governed

  • Manage the country more efficiently by avoiding fragmentation of competences and by introducing homogenous packages at the appropriate government level.
  • Manage government spending more efficiently by focusing on core competences and by making clear budgetary choices that promote economic recovery and growth.
  • Cut administrative burdens by simplifying and digitalizing administrative processes (e.g. permits), including judicial procedures, further building on good (and sometimes new) practices learned during the COVID-19 crisis.

About the author

Gauthier Masco, Policy Assistant, AmCham Belgium

Optimistic and always willing to discuss legal and economic developments, Gauthier translates expertise from our members to new policy opportunities for the Chamber. He gets his energy from either sports or breakfast.