Economist.com Cities Guide: Brussels Briefing - December 2005

News this month

The question of rebate

On January 1st, Britain will hand over the rotating presidency of the Brussels-based European Union to Austria. The success of a country's presidency is usually judged on its record of piloting certain issues over the six-month period. But Britain's presidency will be assessed almost entirely on the outcome of the European Council, which was held in Brussels on December 15th and 16th.

During the meetings, Tony Blair, Britain's prime minister, worked hard to get an agreement on the EU's budget for 2007-2013. But the deal came at a stiff price for Britain, which will have to surrender a sizeable fraction of its rebate—the mechanism by which it is refunded EU money as compensation for paying more into the common purse than it receives. In return, Mr Blair received some small concessions on the spending cuts he has been seeking; the agreement pared the budget to €862 billion ($1.04 trillion) from the €871 billion proposed by Luxembourg, although this was still above the €847 billion proposed by Britain. But he failed to get a reduction in the EU's enormous farm subsidies, his original goal. Relations between the various countries of the EU have been rather fraught in 2005, and the summit did little to reconcile opposing parties. Austria may have to apply some soothing balm.

Veiled attack

Belgians are still shaken by the discovery that a suicide attack in Iraq was the work of a Belgian woman. Muriel Degauque, a 38-year-old from Charleroi, just south of Brussels, blew herself up just outside Baghdad on November 9th, killing five Iraqi policemen and injuring a sixth and four civilians. She is the first European female suicide bomber in Iraq. Degauque, who was raised Catholic in the industrial town of Charleroi, had converted to a radical form of Islam espoused by her half-Moroccan husband, Hissam Goris. She travelled to Iraq with her husband, who was shot by American security forces before he could detonate his bomb.

Police raided houses in Belgium and France after the attack, and five people are being held in custody in Belgium. Investigators in Brussels suspect these men are part of a group working locally to recruit suicide bombers, but the men have denied working together, despite knowing each other from school. Local mosques that harbour radical preachers have been under scrutiny.

Tongue lashing

In a controversial decision on December 2nd, Flemish authorities agreed to make the ability to speak Dutch a pre-requisite for getting social housing. The proposal, which has yet to become law, pushes non-Dutch-speakers to take a language course in order to become eligible for one of the 134,000 homes available to low-income locals in the Dutch-speaking part of Belgium. Housing associations in the region claim this will worsen relations with immigrants. The move was initiated by the Flemish liberal and centre-right parties, which are part of the region's ruling coalition. Their tough stance on immigrants can perhaps be explained as a defensive move against the right-wing Vlaams Belang, which campaigns against immigration and for an independent Flanders.

Meanwhile, political parties in French-speaking Belgium see the proposal as a threat to areas just outside Brussels, which, though technically in Flanders, are dominated by francophone residents. They have promised to challenge the legality of the proposal and its compatibility with both the Belgian constitution and European Union law.

Off course

Motor-sports are very popular in Belgium, but that does not explain why everyone is talking about Formula One (F1). The future of the Belgian Grand Prix, which has been frequently run at the Spa Francorchamps circuit since 1950, has been uncertain following the bankruptcy of the local F1 promoter last year. Owing to F1's contract with the Walloon government, the responsibility for underwriting the event fell to the government, which meant shouldering losses of about €15m ($18m) and attracting fierce criticism.

The government claims it cannot afford to continue to bail out the race's promoter, and has been in talks with Bernie Ecclestone, F1's colourful British boss, to plug this drain on local coffers. Mr Ecclestone said he was keen to create a plan to ensure the survival of the race in Belgium, and to discuss improvements to the local circuit's facilities. On December 12th, a special committee of the Walloon parliament began hearings on the issue, and the government is considering a €6m investment in the 2006 Grand Prix. The arrangement may find Mr Ecclestone promoting the event himself.

Brewing resentment

Belgium's vast array of beers expands further every December, when breweries promote special varieties for Christmas. But a bout of bickering among beer-makers has cast a pall over this year's celebrations.

InBev, the world's biggest brewer, will close several of its smaller breweries, creating more than 200 job losses. Zythos, the Belgian beer-drinkers' organisation, claimed the closures proved that InBev was run by bankers instead of brewers, and accused the company of abandoning Belgium's brewing traditions. The closures also mean that Hoegaarden, InBev's popular wheat beer, will no longer be brewed in the Flemish village it was named after. Instead, production will move to Jupille. A march in Hoegaarden on December 10th attracted 3,000 demonstrators, and more protests are planned. InBev was formed in 2004 by the $11 billion merger of Belgium's Interbrew and AmBev, Brazil's biggest brewer.

Catch if you can

December 2005

Christmas in Brussels

You would have to be a hard-hearted Grinch not to find some amusement in the centre of Brussels at this time of year. Indeed, the city’s seasonal festivities seem to grow more lavish with every year. This month, it is possible to walk the best part of a mile from Place St-Jean, north of the Grand’ Place, to the Big Wheel at the far end of the Fish Market, taking in at least 100 stalls and attractions on the way. And the annual Christmas crib in the Grand’ Place has acquired added authenticity with the presence of live sheep munching at the manger.

The Fish Market is the site of the city’s annual ice-skating rink (open until January 8th), and nearby look out for two exotic carousels featuring outlandish monsters. Near the vast Novotel hotel on Rue de la Vierge Noir is an equally statuesque ice monster, which visitors are invited to walk through.

For full details of all events, visit the City of Brussels’s “Winter Wonders” website or call +32 2 279 6413.

More from the Brussels cultural calendar