Belgium, burdened with some of the highest national debt and fiscal deficits in the eurozone (21 countries using the euro), has seen the yield on its 10-year government bonds rise to its highest level in 15 years.

According to Belgian economic newspaper L'Echo and other sources, the average yield on 1.3 billion euros (approx. 1.9 trillion won) raised by Belgium through the issuance of 10-year government bonds on the 26th reached 4.41%, marking the highest level since November 2011.

On this day, Belgium issued not only 10-year government bonds but also bonds maturing in 2033 and 2040, borrowing a total of 2.8 billion euros (approx. 4.1 trillion won).

Analysts attribute the upward pressure on bond yields to growing anxieties over public finances, alongside expectations that central banks will raise interest rates as inflation worsens due to rising energy prices triggered by the war involving Iran.

Concerns are also emerging in Belgium that as borrowing costs rise, the "snowball effect" of debt—where interest burdens further increase liabilities—could be brought forward to 2029 instead of the originally projected 2031.

Belgium's public debt currently stands at 720 billion euros (approx. 1,064 trillion won), the fourth highest in the European Union (EU) following Greece, Italy, and France.

Its debt-to-GDP ratio is also approximately 110%, significantly higher than the EU average of 82.9%.

International credit rating agency S&P maintained Belgium's sovereign credit rating at AA- with a stable outlook on the same day, but warned that the rating could be downgraded if energy prices spike, the Brussels Times reported.

S&P noted that while the Belgian economy is robust and its industrial and economic structures are diversified, it remains vulnerable to energy price shocks. The agency projected that ratings could be impacted if massive government debt and the fiscal deficit—which stands at 5.3% of GDP, one of the highest levels in the eurozone—grow larger than expected.

Due to its fiscal deficit, Belgium is considering harsh austerity measures such as cutting healthcare, pensions, and social security benefits, as well as raising taxes. However, mounting backlash from various sectors has sparked protests, and delays in budget agreements by political circles are intensifying fiscal pressure.

Meanwhile, in neighboring France, amid ongoing social unrest marked by large-scale protests against poor educational conditions and high inflation, anxieties over public finances have also grown, with the 10-year bond yield recently surpassing 5% for the first time since 2002.

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