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Country Commercial Guides FY 2000: Belgium Report prepared by U.S. Embassy Brussels, released July 1999 Note*

CHAPTER III. POLITICAL ENVIRONMENT

Nature of Political Relationship with the United States

U.S.-Belgian bilateral relations are excellent. Active in international diplomacy in Europe, Africa and elsewhere, Belgium is a close ally and works with the United States on many international issues. Successive Belgian governments have been committed to the development of a strong European Union with common foreign, security and economic policies. These governments have also been proponents of strong transatlantic ties through NATO (North Atlantic Treaty Organization) and other institutions.

Belgium is home to the European Union (EU), NATO, Western European Union (WEU) and over 100 other international organizations. Belgium is a substantial aid donor, contributing bilaterally and multilaterally to humanitarian aid and development programs. In addition, Belgium is a provider of peacekeeping troops and has participated in various peacekeeping operations, including in Somalia, Rwanda and the former Yugoslavia. As a member of the IMF Executive Board, the G-10,and other organizations, Belgium wields significant influence in world affairs.

Major Political Issues Affecting Business Climate

Belgium has been a longstanding supporter on increased European political and economic integration. The lowering of barriers to movement of goods, services, capital, and labor within europe that Belgium had consistently advocated had and will benefit European and foreign businesses alike.

Brief Synopsis of Political System

Belgium has been a constitutional monarchy since 1830. Albert II was invested as King in August 1993, after the death of his brother Baudouin. The King, Prime Minister and Cabinet constitute the executive branch of the federal government, with its 71-member Senate and 150-member Chamber of Deputies constituting the legislative branch. The Government must retain the support of a majority in the Chamber of Deputies to remain in power. Federal parliamentary elections are held every four years or earlier if the government loses the support of a majority in the Chamber and no alternative coalition can be formed. There is universal suffrage, with compulsory voting and proportional representation.

On July 12, following the June 13, 1999 national and regional elections, a new "Right-Left" coalition government was formed. It consists of the Flemish and Francophone Liberal parties, the Socialists, and the Greens. The Prime Minister is Guy Verhofstadt, of the Flemish Liberal Party (VLD).

The most significant, long-term factor in Belgian politics in recent years has been the gradual devolution of powers from the central authority to the regions. In the new federal structure, approved in July 1993, sovereignty is shared by the federal government, regions and the language communities. There is no hierarchy between these policy levels. Each has its own exclusive powers and is not allowed to interfere in matters under the jurisdiction of the others.

The regions are Flanders (northern, Dutch-speaking part of Belgium), Wallonia (southern, French-speaking area), and Brussels (the capital region, limited to 19 bilingual communes). There is also a small German-speaking region in the eastern part of the country. Each region is responsible for a wide range of socio-economic matters within its own territory. Elected regional assemblies for Flanders, Wallonia and Brussels exercise legislative powers within their own regions and elect executive authorities. Under the evolving federal system, the responsibility for areas of interest to U.S. business such as foreign trade, environment and investment regimes and incentives will increasingly become the responsibility of the regional governments. This devolution means that Americans wishing to do business in Belgium have considerably more contact with regional officials than in the past.