The Brussels paradox: rich in GDP, poor in income

19% of Belgian GDP

Brussels produces approximately 19% of Belgium's gross domestic product, with only 10% of the population. This economic wealth is explained by the concentration of European institutions, corporate headquarters, and financial services. Brussels' GDP per capita is the highest in the country.

360,000 commuters

Every day, approximately 360,000 workers commute to Brussels from Flanders and Wallonia. They contribute to Brussels' GDP but pay their income taxes in their municipality of residence. Brussels bears the infrastructure costs without benefiting from the corresponding tax revenues.

Lower disposable income

Despite a high GDP, the average disposable income per capita in Brussels is lower than in Flanders. Poverty affects 30% of the Brussels population. The regional unemployment rate (15.3%) is the highest of the three Belgian Regions.

Fiscal transfers

The Belgian tax system redistributes part of the revenue between Regions. Brussels is both a net contributor to national GDP and a beneficiary of solidarity mechanisms. The question of Brussels' funding — particularly compensation for commuters — is a recurring theme in institutional negotiations.

Why this matters for the crisis

The Brussels paradox explains why the government crisis hits so hard: a structurally underfunded Region that loses its investment capacity for two years sees its public services deteriorate faster than the other two Regions.