Belgium: Staff Report for the 2011 Article IV Consultation
IMF Staff Country Reports, March 20, 2012
Source details
- Canonical URL
- Belgium: Staff Report for the 2011 Article IV Consultation
Other formats
Bibliographic details
- Published: March 20, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475502381.002
Executive summary and principal findings
- The vulnerability of Belgium’s sovereign debt to market pressures makes credible medium-term fiscal consolidation a priority.
- The 2012 budget includes sizable consolidation measures.
- The government is committed to take additional measures as needed with the aim of reaching structural balance by 2015.
- In light of the weak growth prospects, automatic stabilizers should be allowed to operate freely around the consolidation path.
- There is a need to strengthen banking supervision and to implement the Basel III and Solvency II regulatory frameworks.
Fiscal policy and consolidation recommendations
- Prioritize credible medium-term fiscal consolidation to reduce sovereign debt vulnerability.
- Implement and, if necessary, supplement the sizable consolidation measures contained in the 2012 budget.
- Aim to reach structural balance by 2015.
- Allow automatic stabilizers to operate freely around the consolidation path given weak growth prospects.
Financial sector and supervisory reforms
- Strengthen banking supervision.
- Implement Basel III regulatory framework.
- Implement Solvency II regulatory framework.
Thematic coverage and keywords
- Subject areas: Banking; Economic sectors; Employment; Financial sector; Fiscal consolidation; Fiscal policy; Labor; Potential output; Public debt; Revenue administration.
- Keywords: article IV consultation staff report; banking sector; budgetary fund; CR; dividend; Employment; Europe; financial market; Financial sector; Fiscal consolidation; Global; ing Belgium; ISCR; KBC; real GDP.
Content in this bundle
- Belgium: 2012 Article IV Consultation; IMF Country Report 12/55; February 24, 2012