Belgium begins 2026 in a markedly stronger position than it did a year ago. At the start of 2025, the country was grappling with political paralysis: no federal government, no agreed budget, and no clear strategy for long-delayed social and economic reforms.
Twelve months later, Belgium not only has a functioning government but also a prime minister enjoying a level of political capital few would have predicted.
Prime Minister Bart De Wever of the New Flemish Alliance (N-VA) has emerged as a central figure both domestically and on the international stage. His firm stance on the European Union’s plans regarding frozen Russian assets, taken amid intense external pressure, earned him unexpected respect across Belgium’s deeply divided political landscape.
Supporters and critics alike credited him with defending national interests, briefly uniting a country often struggling to find common ground.
Yet the question facing Belgium in 2026 is how far that political capital can stretch. Beneath the surface optimism lie serious structural challenges that cannot be postponed much longer.
Foremost among them are sweeping reforms to pensions, unemployment benefits and labour practices. The federal government is determined to push these measures through, arguing they are essential to stabilise public finances.
Trade unions, however, remain defiant, and industrial action—already a feature of 2025—shows little sign of fading. Despite the strikes, few expect the government to retreat, particularly given De Wever’s proven willingness to withstand pressure.
Belgium’s fiscal situation adds urgency to the debate. Economic growth is slowing, investment remains subdued and national debt continues to rise, with the debt-to-GDP ratio exceeding 100%.
Brussels has warned that without decisive action, Belgium risks drifting into a deeper fiscal crisis. Added to this are rising defence commitments and growing global trade tensions, leaving policymakers with little room for manoeuvre.
Law and order present another pressing concern. Overstretched courts, overcrowded prisons and public frustration with what many see as lenient sentencing have fuelled anxiety.
Drug-related violence, particularly in major cities, has damaged Belgium’s international image. While cooperation with the United States has intensified efforts to disrupt trafficking routes through Antwerp, long-promised police and judicial reforms remain urgent.
Then there is Brussels itself. The absence of a regional government continues to undermine governance, accountability and investor confidence in the capital. From housing and education to culture and security, the paralysis is increasingly viewed as unsustainable.
Beyond these known challenges, Belgium faces a volatile international environment. As host to both EU and NATO institutions, it sits at the crossroads of geopolitical tensions, cyber threats and security risks.
Still, Belgians may find unity in at least one arena this year. The national football team, the Red Devils, kick off their World Cup campaign in June—an event likely to offer rare moments of shared optimism in an otherwise demanding year.