The signals are red. The situation of Belgian public finances is worrying. It is moreover in the sights of various large structures such as the European Commission, the IMF, the OECD… On the set of QR l’actu, UCLouvain economist Bertrand Candelon makes a blunt decision.
“There is poor management of public money and waste. We have of course had a difficult time with the covid and we had to support the economy and spend. On the other hand, before the covid our debt is already significant and was already reaching 100%, therefore beyond the 60% which are the criteria imposed by the Maastricht convergence. We live beyond our means.”
Today, the drift in debt sustainability is a real risk, adds Bertrand Candelon: “Cheap money is over. Interest rates are rising and in a few months real interest rates will be positive which means there will be runaway debt dynamics. And the The situation of Walloon finances is still very worrying than the federal state. The Walloon debt has reached 250% in relation to revenue. The urgency is clear.”.
