Standard and Poor's says Brussels economy is "very positive"

The influential rating agency Standard & Poor’s has maintained Brussels-Capital Region’s AA rating, while adding a warning that the outlook is negative. “We consider the Region of Brussels Capital to be benefitting from a sound financial management and a wealthy economy,” the agency said.

Brussels finance minister Guy Vanhengel (pictured) said he was delighted with the report. “We had projected a budget deficit of €132 million in 2013,” he said. “But it looks as if we will end the year with the books balanced, or even with a slight surplus. We are the capital of Europe, and so we have to set an example. We can say with confidence that Brussels Region is the best student in the class.”

Vanhengel noted that the positive rating had been achieved without having to increase the tax burden on residents or companies, despite the enormous financial challenges it faced as both the capital of Belgium and of the EU – especially in areas like transport and education. 

The S&P report noted that Brussels was one of Europe’s wealthiest regions, with a per capita purchasing power that was 255% of the EU average. It added that the city’s prosperity was founded on its position as national capital and seat of EU institutions, while noting that its “economic strengths do not fully translate into financial wealth for the region, a paradox explained by current institutional arrangements”.

As well as rating companies and countries, S&P tracks the financial health of hundreds of city councils and regional authorities. The rating is an important tool for national and international investors; a positive rating makes it easier for a city to raise funds at a low interest rate for major infrastructure projects.

The rating agency recently downgraded the European Union one notch from AAA to AA+.