Overseas Business Risk: Belgium

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Information on key security and political risks which UK businesses may face when operating in Belgium.

General overview

Belgium and the United Kingdom are essential allies and close neighbours. We have a strong trading relationship and our supply chains are closely connected. Belgium is the UK’s eighth largest export and seventh largest import market (September 2022).

Belgium hosts the Headquarters of the EU Commission and Council, NATO and many other international organisations. It is the eighth most populated country of the European Union with 11.56 million inhabitants (June 2022).

Often referred to as the crossroads of Europe it consists of two very distinct cultural regions, Flanders (Dutch speaking north; population 6.6 million) and Wallonia (French speaking south; population 3.6 million). Brussels is officially bilingual (population 1.25 million). There is also a small German-speaking community (77,000) in the southeast.

Politics

Belgium is a constitutional monarchy governed by a multi-party coalition of both Flemish and Francophone parties. A federal state with three regions (Flanders, Wallonia and the Brussels Capital Region) and three language-based Communities (Flemish, French and German). Within the regions, there are 10 provinces and almost 600 local authorities (municipalities).

The Federal government is responsible for some major issues including defence, foreign affairs, justice and home affairs, national budget and social security. Regional responsibilities include environment, transport, energy, agriculture, and public works. Responsibility for education and culture rests with the language communities, while some issues, such as health, span all. Regional and community governments are entirely autonomous in the areas where power is devolved.

Federal, regional and community elections are held every 5 years, and provincial and local elections every 6 years. Voting is compulsory, except for the local and provincial level in Flanders. The most recent federal and regional elections were in May 2019 and the next expected in 2024. Regional Governments formed in September 2019, while the Federal Government formed on 1 October 2020. The current Federal Government is a seven-party coalition made up of Francophone and Flemish Socialists (PS and SP.A), Liberals (MR and Open VLD), Greens (Ecolo and Groen) and Flemish Christian Democrats (CD&V).

Economics

Belgium has a developed, modern, private-enterprise economy. Exports amount to over 80% of its GDP. Main imports are raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment and oil products. Main exports are machinery and equipment, chemicals, finished diamonds, metals and metal products and foodstuffs.

With few natural resources, substantial quantities of its energy and raw materials are imported while large volumes of manufactured goods are exported, making its economy highly dependent on world markets and global trade.

Business and human rights

The minimum national wage in Belgium is €1879 per month (August 2022). The average single worker bears the OECD’s highest income tax of 52.6%. Workers in Belgium benefit from high labour standards and strong legal protection. Wages are pegged to inflation and provide for automatic wage indexation as costs of living rise.

Every 2 years wages are also aligned to the wage forecasts of France, Germany and the Netherlands. Corporate tax is 25% (July 2022).

Belgium was a founding member of the European Union and the Council of Europe and is a signatory to the European Convention on Human Rights. In 2021, Belgium established its Federal Human Rights Institute. This institute complements the existing human rights landscape including Unia, the Interfederal Centre for Equal Opportunities. The Flemish Government is currently establishing its own human rights institute.

Women’s rights are well protected under anti-discrimination laws. The representation of women in the Federal Parliament has been increasing steadily supported by a law requiring political parties to nominate at least 33% women.

Belgium became the second country in the world to legalise same-sex marriage on 1 June 2003.

Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

According tothe Transparency International`s Corruption Perceptions Index 2021 Belgium ranked 18th out of 180 countries (UK is 11th).

Terrorism threat

Refer to the terrorism section of the FCDO Travel Advice for Belgium.

Protective security advice

Prior to the Covid pandemic which started in 2020 around 1.8 million British nationals visit Belgium every year. Most visits are trouble-free. Refer to safety and security section of the FCDO Travel Advice for Belgium.

Cyber security

Belgium ranks 19th in the 2020 Global Cybersecurity Index (UK is 2nd). Belgium launched its Cyber Security Strategy in 2012 and on 20 May 2021 published its 2.0 Cyber Security Strategy. Belgium established its Cyber Security Centre in 2015.

Intellectual property

Intellectual Property rights are territorial i.e. they only give protection in the countries where they are granted or registered. There is no single European patent; a European patent is a “bundle” of individual national patents. If you are thinking about trading internationally, then you should consider registering your Intellectual Property rights in your export markets.

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