12.5 Euro – Belgium

In 2024, Belgium’s currency situation is firmly anchored within the Eurozone framework, using the euro (€) as its sole legal tender. As a founding member of the European Union and a key participant in the Economic and Monetary Union (EMU), Belgium’s monetary policy is set by the European Central Bank (ECB). The primary domestic focus is therefore not on a national currency but on managing the impacts of ECB decisions—particularly the high-interest rate environment maintained to combat persistent inflation—on its economy, households, and public debt, which remains among the highest in the EU.

The key economic challenge for Belgium in 2024 is navigating the tension between the ECB's restrictive monetary policy and its own need for fiscal sustainability. High borrowing costs put significant pressure on the federal budget, complicating efforts to reduce the country's substantial public debt, which exceeds 105% of GDP. This creates a complex domestic debate about necessary fiscal consolidation and reforms, all while operating within the constraints of a shared currency that offers stability but removes devaluation as a tool for economic adjustment.

Looking forward, Belgium’s currency "situation" is one of stability with underlying strain. The euro provides transactional ease and shields the economy from exchange rate volatility within the single market. However, the national conversation revolves around economic competitiveness, wage indexation, and energy costs within the euro framework. The long-term outlook remains tied to the broader Eurozone's success in balancing inflation control with growth, and to Belgium's ability to implement structural reforms to strengthen its fiscal position without the lever of independent monetary policy.