Brussels is headquarters for the EU Comission and Central Bank.
From the Brussels Journal:
Belgian Bonds [Yields] Begin to Balloon
While government backed investments are usually considered amongst the safer investments, the prolonged period of political unrest has led some spectators to believe that the Belgian government may split as both sides seem unlikely to compromise. In the event that the government disbands, debt holders run the risk of losing some or all of their investment.Oh that's right, they haven't had a government for 160 days and will probably cease to exist as a country.
The implications of a downfall in Belgium on the Euro-Zone economy could be significant. The Belgian economy is the 17th-largest in the world according to statistics compiled in 2006 and ranks as the 10th-largest market for the export of U.S. goods.Who knew?
From EU Referendum:
The language that surrounds the latest collapse in the possible coalition talks seems to me to be unbearably gloomy. International Herald Tribune quotes Associated Press:
Belgium slumped into one of the deepest political crises in 50 years on Wednesday when coalition talks between Flemish and Francophone parties collapsed under the weight of incessant recriminations between leaders of the language groups.
Belgium is on the brink. A country formed only in 1830 is staring into the political abyss today, and the distinct possibility of breaking up. Yves Leterme won last summer's elections, and has tried, but so far failed, to form a coalition government to run his country. Today may see the beginning of the end.