U.S. DEPARTMENT OF STATE BACKGROUND NOTES: BELGIUM, NOVEMBER 1994 PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS November 1994 Official Name: Kingdom of Belgium PROFILE Geography Area: 30,519 sq. km. (11,799 sq. mi.); about the size of Maryland. Cities: Capital--Brussels (pop. 950,000). Other cities-- Antwerp (466,000), Ghent (230,000), Liege (196,000). Terrain: Varies from coastal plains in northwest through low hills to the Ardennes Mountains in the southeast. Climate: Cool, temperate, and rainy, without extreme temperatures. People Nationality: Noun and adjective--Belgian(s). Population (1994 est.): 10 million. Annual growth rate: 3.5%. Linguistic groups: Dutch 58%, French 32%, legally bilingual region of Brussels, German. Religion: Roman Catholic 75%. Education: Years compulsory--to age 18. Literacy--98%. Health: Infant mortality rate--9/1,000. Life expectancy-- 70 yrs. men; 77 yrs. women. Work force (1994 est.) 4.3 million: Services and transportation--44%. Industry and construction--34%. Public service--20%. Agriculture--2%. Government Type: Parliamentary democracy under a constitutional monarch. Independence: 1830. Constitution: 1993 (revised). Branches: Executive--king (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative--bicameral parliament (Senate and House of Representatives); regional assemblies with Executives for Regional Affairs for Flanders, Brussels, and Wallonia (to be replaced by regional legislatures in 1995; community assemblies with Executives for Cultural Affairs for major linguistic communities. Judicial--Court of Cassation. Subdivisions: 3 regions (Flanders; Wallonia; Brussels- Capital); 3 cultural/cultural communities (Francophone, Flemish, German); 10 provinces; 589 communes. Political parties: Flemish Christian Democrats (CVP), Francophone Christian Democrats (PSC), Francophone Socialists (PS), Flemish Socialists (SP), Flemish Liberal (VLD), Francophone Liberal (PRL), Volksunie (VU), Francophone Democratic Front (FDF), Flemish Ecologists (AGALEV), Vlaams Blok (VB), Francophone Ecologists (ECOLO), Front National (FN). Suffrage: Universal and compulsory at 18. Economy GDP (1994 est.): $226 billion. Annual growth rate (1994 est.): 1.8%. Per capita income (1994 est.): $20,600. Natural resources: Coal. Agriculture (2% of GDP): Products--livestock, including dairy cattle, grain, sugar beets, nursery products, flax, tobacco, potatoes, other vegetables, fruits. Industry (28% of GDP): Types--machinery, iron and steel, coal, textiles, chemicals, glass, pharmaceuticals, manufactured goods. Trade (1994 est.): Exports--$115 billion: iron and steel, transportation equipment, tractors, diamonds, petroleum products. Imports--$117 billion: fuels, chemical products, grains, foodstuffs. Trading partners--European Union 75%; U.S. 5%. Official exchange rate (1994 average) 33 Belgian francs=U.S.$1. n PEOPLE At the crossroads of Europe, Belgium has witnessed a constant ebb and flow of different peoples and cultures over its long history. It comprises cultural elements of Celtic, Roman, German, French, Dutch, Spanish, and Austrian origins. Immigrants who came to Belgium from Southern Europe, Turkey, and North Africa after World War II have further contributed to the country's cultural mix. Today, Belgians are divided linguistically into Dutch speakers, called Flemings, and French speakers, called Walloons, with a nominally bilingual population in Brussels. Some 67,000 German speakers live in the east; about 900,000 foreigners reside in Belgium as well. Population density is the second highest in Europe, after the Netherlands. HISTORY Belgium has existed essentially in its present form since 1830, when an uprising led to independence from The Netherlands. The country's name goes back to a Celtic tribe, the Belgae, whom Julius Caesar described as the most courageous tribe in all of Gaul. The Belgae were overwhelmed, however, by Caesar's legions around 50 BC, and for 300 years the area was a Roman province. Some scholars believe that the southern part of Belgium was the northernmost area of true Roman cultural penetration, beyond which Latin never really took hold. The proto-Dutch language, spoken by the Frankish invaders who swept through the Roman Empire in the 4th century AD, took hold north of that line. Throughout most of the Middle Ages, life in the area centered on the quasi-independent trading and manufacturing towns--Ghent, Bruges, Antwerp, Liege, and others--that rose out of the rubble left by the Viking ravages of northern Europe. After centuries of war and many accidents of dynastic succession, the area that had come to be known as the Lowlands--comprising the approximate modern territories of Belgium, The Netherlands, and Luxembourg--came into the possession of Charles V, the Holy Roman Emperor in the early 1500s. The arrival of Protestantism polarized the Lowlands into two hostile camps. In the religious wars, the split became geo- graphic and political as the Protestants succeeded in establishing the United Provinces of the Netherlands in the north. The remaining Catholic territory after these wars is roughly equivalent to modern Belgium. After two centuries of Spanish rule, the Austrian Hapsburgs gained control of the country after the Treaty of Utrecht (1713). Napoleon annexed it to France in 1794. After his defeat in 1815, Belgium was awarded to The Netherlands. However, after 15 years of chafing against Dutch administrative and economic reforms, the Belgian people revolted and declared the independent state of Belgium in 1830. A progressive, almost republican constitution, was created, and the state was successfully launched with Leopold I, a German prince, as the first King of the Belgians. For 84 years, Belgium remained neutral in an era of intra- European wars until German troops overran the country during their attack on France in 1914. King Albert, the constitutional commander-in-chief of the armed forces, rallied what remained of his troops and, after joining the French Army, was able to retain a tiny corner of Flemish Belgium near the sea throughout the war. Some of the fiercest battles of World War I were fought on "Flanders' Fields." The inter-war years saw an unprecedented blooming of Flemish culture in northern Belgium and a sharpening of ethnic rivalry between the northern Dutch-speaking Flemings and the southern French-speaking Walloons. Partly as a result, in 1936, Belgium reverted to its former policy of neutrality, trying not to provide Nazi Germany with an excuse to invade. As in 1914, this failed, and Belgium was occupied by the Germans in 1940. While the cabinet and other political leaders established a government-in-exile in London, the King remained in Belgium for the entire war. The King's controversial behavior during the German occupation forced him, in 1951, to abdicate in favor of his son, Baudouin, who reigned until his death in 1993. The current King is Baudouin's brother, Albert II. GOVERNMENT Belgium is a parliamentary democracy under a constitutional monarch. Although the king (chief of state) is technically the source of all executive authority, the Council of Ministers (cabinet) actually makes all governmental decisions. The Council of Ministers, led by the prime minister (head of government), holds office as long as it retains the confidence of the parliament. Parliamentary elections are held at least every 4 years. There is universal suffrage, with obligatory voting and a complicated system of proportional representation. The bicameral parliament consists of the Senate and the House of Representatives. Constitutional reforms passed in 1993 will reduce the size of both bodies after the next national elections, in November 1995. Of the current 183 senators, 106 (71 after 1995) are elected by direct vote, 51 (40) are elected by provincial councils, and 26 (10) by fellow senators. Prince Philippe, heir to the throne, also is a member of the Senate. The 212 (150) members of the House of Representatives, traditionally the dominant body, are all directly elected. In 1970 and 1980, the constitution was amended to provide for creation of "community" and regional assemblies and executive boards. Currently, Belgium consists of three linguistic "communities" (francophone, Dutch-speaking, and German-speaking) and three regions (Flanders, Wallonia, and Brussels-Capital). In 1989 and 1993, new rounds of constitutional amendments gave these bodies significant powers that had formerly been the domain of the national government. For Flanders and Wallonia, regional and community assemblies are currently composed of the members of the House of Representatives and of the directly elected Senators from each regional cultural entity. For the Brussels-Capital region, members of the regional assembly are elected directly in special elections. Beginning with the next national elections, regional and community councils will be directly elected. The regional councils will in turn elect the regional governments from among their members. The Belgian judiciary is modeled on the French system. The highest court is the Court of Cassation; its chief justice is appointed by the king. The courts rule on the constitutionality of acts by all levels of authority concerning equality, nondiscrimination, and freedom of education. In addition, advisory opinions on major legislation are rendered by the Council of State, a special legal group. Principal Government Officials Chief of State--King Albert II Prime Minister--Jean-Luc Dehaene (CVP) Vice Premier, Minister of Communications and Public Enterprises--Elio Di Rupo (PS) Vice Premier, Minister of Foreign Affairs--Frank Vandenbroucke (SP) Vice Premier, Minister of Justice and Economic Affairs-- Melchior Wathelet (PSC) Vice Premier, Minister of the Budget--Herman Van Rompuy (CVP) Ambassador to the United States--Andre Adam Ambassador to the United Nations--Alexis Reyn The Belgian embassy is at 3330 Garfield Street NW., Washington, DC 20008 (tel. 202-333-6900; Fax 202-333-3079) POLITICAL CONDITIONS The most significant factor in Belgian politics is the division of the Belgian people into two major language groups--Flemish (Dutch) speakers and French speakers. All major institutions are divided by language. Regional and linguistic interests and concerns affect all important national decisions. Constitutional reform efforts since the early 1960s sought to mitigate conflicts between language groups by granting increasing autonomy to the linguistic regions and communities. The 1988-89 round of constitutional reform resulted in the devolution of significant powers to regional and community assemblies and executive boards. Another package of constitutional reforms and amendments passed in 1993 officially transformed Belgium into a federal state and further increased the competencies of the Flemish, Walloon, and Brussels-Capital regional governments. The regions received policy-making authority in foreign trade, agriculture, and other areas. In addition, the package reduced the size of the national Senate and Chamber of Deputies, assured direct elections of regional legislative assemblies, and set conditions for Francophones living in the Brussels "periphery" in Flanders to vote and participate in the political deliberations of the Walloon Regional Government and the Francophone Community. The 1993 accords also mandated budget savings, transferred additional revenue competencies to the regions, and split the province of Brabant into Flemish and Walloon components. In his 1994 state of the union address, Prime Minister Dehaene cited improving Belgium's economic situation as his coalition's top priority. Issues of particular interest included reducing unemployment, financing social security, and attracting foreign investment. The government's current program of economic austerity is unpopular among some sectors of society but is necessary if Belgium is to meet requirements for European Monetary Union membership which state that a nation's budget deficit cannot be more than 3% of GDP. Despite the federalization of Belgium in 1993, the government continues to face the issue of devolution of central authority. Particularly contentious is a proposal by some Fleming politicians and economic leaders to federalize social security and health care and to give the regions even greater fiscal autonomy. Political Parties Belgium has the traditional range of political parties normally found in most modern European democracies, from "Greens" through socialist and Christian democratic to conservative (in Europe, conservative parties are frequently referred to as "Liberal" parties). In Belgium, however, the three parties that represent the main ideological tendencies (socialist, Christian democratic, conservative), plus the "Greens" have split along linguistic lines into entirely separate parties--e.g., Flemish socialists and Francophone socialists. In addition to the mainstream parties, Flemish and Francophone extreme-right parties also exist and pulled about 8% of the aggregate vote in local and provincial elections in 1994. Traditionally, the Roman Catholic Church was the basis for the Christian democratic parties (known as the CVP in Flanders and the PSC in Wallonia). Recently, the Christian democrats generally have promoted broad principles of social unity without overt reference to ecclesiastical ties. The two parties draw support for their moderate policies from all social classes, including members of the Catholic Trade Union Federation, Belgium's largest labor organization. The socialist parties in Belgium (the PS in Wallonia and the SP in Flanders) are pragmatic and moderate on most issues. Both socialist parties have concentrated on social welfare and industrial democracy within the framework of Belgium's free enterprise economy. The parties are closely associated with the Belgian Federation of Labor, the country's second largest trade union organization. The conservative/Liberal parties (the PRL in Wallonia and the VLD in Flanders) promote free enterprise, individualism, and small business. Liberals favor reducing government spending and removing regulations and believe that the state should encourage private initiative. They advocate moderate, gradual social reform and appeal mainly to the middle class, particularly small entrepreneurs, professionals, and shopkeepers. The Volksunie (VU), a Flemish nationalist party, favors independence for Flanders. The party has lost support in the last few years, principally to the more extreme Vlaams Blok (VS), an extreme-right party, which has emerged as the greatest threat to the VU as well as other traditional Flemish parties. In the 1994 municipal and provincial elections, the VB's anti-immigrant, anti-central Belgian Government message attracted support beyond its traditional ultra-right base from mainstream voters disenchanted with traditional parties. Its support is centered in the city of Antwerp, where it received more votes than any other party in the 1994 municipal election. Two Francophone far-right parties, the National Front (FN) and Agir, made notable gains in certain Walloon cities in the 1994 municipal and provincial elections. The Walloon- independence movement's impact on Belgian politics is negligible. The Democratic Front of Francophones (FDF) defends the interests of the Francophone majority in metropolitan Brussels. The Belgian "Green" parties, AGALEV in Flanders and ECOLO in Wallonia, continue to attract support from young voters as well as others disenchanted with the traditional parties. In addition to increased environmental protection, the two "green" parties support nuclear and conventional disarmament and integration of immigrants into Belgian society. In May 1988, Flemish and Francophone Christian Democrats and Socialists and the Flemish nationalist Volksunie formed a government whose centerpieces were a package of constitutional reforms that would allow the devolution of significant powers to regional and community executives and assemblies and agreement on maintaining the fiscal reform program. A compromise among the parties led to new provisions for dealing with linguistic tensions. The first two phases of constitutional reform were completed by July 1989. In September 1991, a crisis erupted ostensibly over the issue of Flemish refusal to approve the issuance of arms export licenses to Walloon firms. In reality, the government collapsed because of its inability to reach agreement on devolution of power on issues such as state reform, regionalization of international trade and agriculture, and the Francophone community's inability to pay its teachers. The government stayed on in a caretaker capacity through the November 1991 national elections and the eventual formation of a new government coalition in March 1992. That coalition, under the leadership of Prime Minister Jean-Luc Dehaene, was still center-left in its composition. Christian Democrats and Socialists agreed on a limited government program and launched a well-publicized community- to-community dialogue to try to jump-start constitutional reform. Although the dialogue broke off in July 1992 without agreement on any substantive issues, the government succeeded in crafting a "grand compromise" when it reconvened in September 1992. That agreement, which was ratified by parliament in July 1993, included additional austerity measures in a broad package of institutional and state reforms. Currently, Belgian legislators are attempting to focus their attention on economic initiatives such as reducing unemployment and bringing the budget deficit under control. However, tensions still remain within the government over waning support for traditional parties, as evidenced by the 1994 provincial and municipal election results, and continuing calls for the federalization of social security. The next general elections must be called no later than November 1995. The government coalition assembled in 1992, under the leadership of Prime Minister Jean-Luc Dehaene, was still center-left in its composition. Christian Democrats and Socialists agreed on a limited government program and launched a well-publicized community-to-community dialogue to try to initiate constitutional reform and proceed to the third phase. The dialogue broke off in July without agreement on any substantive issues. Flemish and Francophone positions on voting rights for Francophones living in the Brussels periphery hardened. The dialogue's failure vitiated the budgetary discussions and produced a budget that did not satisfy any of the parties involved. National Security As a member of the North Atlantic Treaty Organization (NATO), Belgium participates in the collective security efforts of the Alliance, and its army, navy, and air force are included in NATO's integrated military structure. Belgium is host to both NATO Headquarters in Brussels and the Supreme Headquarters, Allied Powers Europe, located at Casteau, near the southern town of Mons. The Belgian armed forces are in transition, the result of the end of the Cold War and reduced defense funding as Belgium strives to meet economic targets for entry into the European Economic and Monetary Union. Defense Minister Delcroix released a restructuring plan in July 1992 that will convert the military to an all-volunteer force and reduce its size by roughly 45%, from 85,000 to 45,000, by 1997. Under the plan, defense funding will remain frozen at the 1993 figure of approximately $3.2 billion. Conscription ended in January 1994. The Belgian Government has publicly stated that it will continue to meet all its alliance and other international defense commitments and, in this connection, it is to undertake consultations with NATO as part of finalizing Belgium's defense restructuring plans. ECONOMY Belgium, as a highly developed market economy, belongs to the Organization for Economic Cooperation and Development (OECD). In recent years, with a geographic area about equal to that of Maryland, and population of 10 million, Belgium's GDP level has placed it in the top 20 for all countries of the world. In 1994, per capita GDP was about $20,600 Densely populated Belgium is located at the heart of one of the world's most highly industrialized regions. The first country to undergo industrialization on the continent of Europe in the early 1800s, Belgium developed an excellent transportation infrastructure of ports, canals, railways, and highways to integrate its industry with that of its neighbors. One of the founding members of the European Union (EU), Belgium strongly supports deepening the powers of the EU to integrate European economies. Belgium supports establishment of a single EU monetary policy and currency before the end of the century. With exports equivalent to about two-thirds of GDP, Belgium depends heavily on world trade. It exports twice as much per capita as Germany and five times as much as Japan. Its trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. Belgium has virtually no exploitable natural resources. Its industrial sector can be compared to a complex processing machine importing raw materials and semi-finished goods that are further processed for re-export. Most traditional industrial sectors are represented, including steel, textiles, refining, food processing, chemicals, pharmaceuticals, automobiles, electronics and machinery fabrication. The early 1980s saw the country facing a difficult period of structural adjustment caused by declining demand for its traditional products, deteriorating economic performance, and neglected structural reform. Consequently, the 1980-82 recession shook Belgium to the core: Unemployment mounted, social welfare costs increased, personal debt soared, the government deficit climbed to 13% of GDP, and the national debt, although mostly held domestically, mushroomed. Against this grim backdrop, in 1982, Prime Minister Martens' center-right coalition government formulated an economic recovery program to promote export-led growth by enhancing the competitiveness of Belgium's export industries. By 1984, annual industrial growth exceeded 5%. Production in the steel and metal-working industry increased. The expansion of high-tech industry, particularly in Flanders, and the service sector continued at a steady pace. By 1985, the government attained a surplus in its trade and current accounts. Economic growth rose from 2% in 1984 to a peak of 4% in 1989. In May 1990, the government linked the franc to the German mark, primarily through closely tracking German interest rates. Consequently, as German interest rates rose after 1990, Belgian rates have increased and have contributed to a decline in the economic growth rate (1.8% in 1994). Other economic problems include an unemployment rate which stands at 10.3% in 1994. The government's continuing economic austerity program emphasizes reducing the government deficit, which currently amounts to almost 7.2% of GDP. Belgium aims to reduce its deficit to no more than 3% of GDP by 1996 in order to join the EU's Economic and Monetary Union in 1997. To reduce its dependence on trade with other EU members (about 75% of its total trade), Belgium also seeks to diversify and expand trade with non- traditional partners such as China and countries of the Middle East and Central and Eastern Europe. Foreign Investment played an important part in Belgian economic growth in the 1960s and continues to be a key element. The Belgian Government encourages new foreign investment as a means to promote employment. With regional devolution, Flanders and Wallonia now court potential investors avidly, offering a host of incentives and benefits. The total U.S. direct investment by more than 1,200 American companies operating in Belgium was estimated at about $11 billion in 1994. The American Chamber of Commerce calculated that U.S. companies provide about 1 out of every 11 jobs in Belgium. Because of their strong export orientation, these jobs were more resilient in the economic crisis than was employment geared to the domestic market. FOREIGN RELATIONS The Concert of Nations sanctioned the creation of Belgium in 1830 on the condition that the country remain strictly neutral. Before each of the World Wars, Belgium tried unsuccessfully to follow this policy. After World War II, recognizing the need for a better means of ensuring security, Belgium became one of the 12 founding members of NATO in 1949. Brussels became the host city for NATO headquarters when NATO left Paris in 1967. Brussels is host to the European Commission and has become a magnet for many other international organizations and for the regional corporate headquarters of many U.S.-based firms. Belgium remains a strong proponent of NATO and of close cooperation with the United States within the alliance. It is a staunch advocate of Europe's continued economic and political integration. Belgium supports the idea of eventually expanding NATO and the European Union but believes that such expansion must be handled very carefully. An active player on the world stage, Belgium has worked hard through such forums as the UN and the Conference on Security and Cooperation in Europe to help shape and define the post- Cold-War world. Belgium maintains a "special" relationship with its former colonies and protectorates in Central Africa which is characterized by a three-pronged policy of support for democraticization and human rights, prevention and management of conflicts, and support for economic and social development. It also contributes generously to international peace-keeping and humanitarian relief operations. Belgium belongs to the UN, NATO, European Union (EU), Belgium-Luxembourg Economic Union (BLEU), Organization for Economic Cooperation and Development (OECD), INTELSAT, Council of Europe, Western European Union, Belgium- Netherlands-Luxembourg Economic Union (Benelux), General Agreement on Tariffs and Trade (GATT), and many other multilateral organizations. U.S.-BELGIAN RELATIONS The United States and Belgium enjoy a strong bilateral relationship and often work together closely in multilateral fora. Militarily, Belgium is committed to sharing the burden of maintaining a strong collective defense. Belgium and the U.S. both advocate the creation of a European defense pillar to work in tandem with the Atlantic alliance. Belgium made significant contributions to the allied efforts in the Gulf war, and the nation works with the U.S. in supporting several international arms control initiatives. Politically, the shared commitment of the two nations to promoting peace, democracy, and human rights has led to a number of positive joint efforts. Belgium has contributed personnel and material to a number of international peace- keeping operations, including the U.S.-led effort to restore democracy to Haiti. Belgium has also been actively engaged in Western efforts to encourage political and economic reform in central and eastern Europe and the former Soviet Union. In addition, Belgium is a frequent supporter of the U.S. in U.S. dialogue with the European Union. The United States and Belgium enjoy a strong and mutually beneficial economic and trade relationship. Belgium is currently the 9th largest market for U.S. goods and services. The two nations are intensifying efforts to combat terrorism, narcotics trafficking, and other forms of international crime. Principal U.S. Embassy Officials Ambassador--Alan J. Blinken Deputy Chief of Mission--Lange Schermerhorn Permanent Representative to the U.S. Mission to NATO (USNATO)--Ambassador Robert E. Hunter Deputy Permanent Representative and Deputy Chief of Mission, USNATO--Robert Pearson Ambassador to the U.S. Mission to the EU (USEU)--Stuart E. Eizenstat Deputy Chief of Mission, USEU--Earl Anthony Wayne The U.S. embassy in Belgium is located at 27 Boulevard du Regent, 1000 Brussels (tel. 02/513-38-30, fax 02/511-27-25). The European Logistical Support Office (ELSO), at Noorderlaan 147, Box 12A, 2030 Antwerp (tel. 03/542-47-75, fax 03/542-65-67). The U.S. mission to NATO (USNATO) is at NATO Headquarters, on the Autoroute de Zaventem, 1110 Brussels (tel. 02/242-52- 80, fax 02/242-06-96). The U.S. mission to the EU is located at 40 Boulevard du Regent, 1000 Brussels (tel. 02/513-44-50, fax 02/511-20-92). TRAVEL INFORMATION The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. They can be obtained by telephone at (202) 647-5225 or by fax at (202) 647-3000; to access the Consular Affairs Bulletin Board by computer modem, dial (202) 647-9225. Travel Warnings are issued when the Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security information, political disturbances, and the addresses of the U.S. embassies and consulates in the subject country. Travelers can check the latest information on health requirements and conditions with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 provides telephonic or fax information on the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-94-8280, price $7.00) is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel also may be obtained from this country's embassy and/or consulates in the U.S. (see "Principal Government Officials"). (###) Published by the U.S. Department of State Bureau of Public Affairs -- Office of Public Communication - - Washington, DC November 1994 -- Managing Editor: Peter A. Knecht Department of State Publication 8087 Background Notes series -- This material is in the public domain and may be reprinted without permission; citation of this source is appreciated. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.