Belgium’s pursuit for stability amidst uncertainty: Will we keep up?

Staying afloat in uncertain times

In 2023, Belgium, like many other countries, dealt with the ‘polycrisis’: a mix of issues  –  inflation, climate worries, geopolitical turmoil, and pressure on our welfare system. Belgium is known for its risk-aversion, but many felt quite uncertain going into 2023. Fewer than one in two Belgians (44%) thought 2023 would be a better year than the last (vs. 65% globally).

Inflation was felt in most people’s grocery budgets, and only 42% felt they were managing well financially. However, the unique Belgian mechanism of automatic wage adjustments for inflation, implemented early in the year, helped maintain domestic consumption levels. Still, this steep elevation of labor costs ignited worries about Belgian companies’ competitiveness.

Given the current climate of inflation, citizens are seeking to make intelligent yet secure use of their personal savings. In August, the federal government re-launched state bonds ('staatsbons'), a program in which citizens can lend the government money at an attractive interest rate and with minimal risk. As such, the government started to compete with banks, and did so with enormous success. The rationale was that banks should increase its their interest rates on saving accounts. The state bond had the objective of making our banks increase their interest rates. Now while it was a huge success, it actually did not succeed in making the banks change their behaviour. Yes, they countered with some short-term initiatives, but all things considered the interest rates on the saving accounts remained unchanged. As a result, this initiative caused mixed reactions among various stakeholders.  

Signs of strain: growing political polarization

Far-right and far-left parties are on the rise according to the latest Ipsos political polls (Ipsos Belgium: ‘De Grote Peiling’, June 2023). Governance became increasingly complex amidst diverging views over Belgium’s ‘cordon sanitaire’: a political practice where multiple parties unite to prevent a far-right party from gaining power and to prevent extremist ideologies from gaining traction. And the success of the extremists is a difficult equation for non-extremist parties. The difference in the two parts of the countries is also huge. The French part of the country tends to vote more to the (extreme) left, whereas the Flemish part of the country tends to vote more for (extreme) right. Vlaams belang, a right-wing party with flavors of extremism, is now the biggest political party in the polls.

Despite these emerging fractures, we still know how to create memorable experiences together

2023 wasn't all worrisome. We kept our spirits high, enjoying music, food and drinks together in our lively festival scene. Electronic dance music festival Tomorrowland was once again a global sensation, attracting 400,000 attendees from Belgium and around the world. Many other smaller scale events in all parts of the country brought people together to celebrate life.

2024 is set to be a significant year for the country

The upcoming European, federal, and regional elections in June 2024 will not only provide a platform for every citizen to express their opinions, but also serve as a reflection of how our nation has navigated the 'polycrisis' thus far, and offer a glimpse into how citizens will ultimately evaluate the events that have defined 2023.

Gerd Callewaert
Country Manager
Ipsos in Belgium

Dorien Deckers
Senior Curator
Ipsos in Belgium