The Governor of Belgium's National Bank Guy Quaden calls for budgetary restraint

Mr. Quaden added that the aging population forms the greatest challenge for the government.

He says that there must be budget surpluses now, in order to pay for an increase in the number of older people, in the future. "A balanced budget is not enough."

The Governor also calls for savings to be made in the public sector. He says that better public services are provided for less money in other countries.

Education is one area singled out by Mr. Quaden. He points to the fact that twelve Rectors attend each and every meeting of Belgium's French language higher education system.

We need to be more competitive  

Mr. Quaden also believes that Belgium should try and improve its competitive position.

"But nobody in Belgian wants wage restraint. So companies will have to invest in reseach and development and training staff."

The National Bank forecasts 2% growth for Belgium in 2006.

Premier agrees with Governor

The Belgian Prime Minister Guy Verhofstadt (Flemish liberal) says that he is happy with the report's findings. He feels that the National Bank is right to stress the importance of competitiveness.

"I think that it will be the greatest challenge", he said. He added that it was also a major priority for the government.

The Prime Minister promised the employers and unions reductions in tax on employment in exchange for wage restraint. Mr. Verhofstadt also said there will be a budget surplus from 2007.