A respite for Belgium

“The Belgian financial bomb defused,” leads Le Soir following the announcement by caretaker Prime Minister Yves Leterme via Twitter that Standard & Poor's did not in the end downgrade Belgium’s credit rating (currently at AA+). “In the market’s view,” writes Le Soir, “our country is able to pay down its debt.” “Panic” had seized the Rue de la Loi (the Belgian government) on December 14 when the rating agency confirmed that the absence of a sitting government – the current one resigned in April 2010 – was undermining the creditworthiness of the country. Yves Leterme was then asked by the king to stay on as head of a caretaker government and draw up a budget with all possible urgency. Though the markets have been calmed for the moment, saysLe Soir, “there is no shortage of reasons to unnerve them in the medium term [...] The most cynical view is that without the threat of the markets (the country) might already be in tatters.For the main obstacle to fresh elections was precisely the spectre of a financial meltdown. [...] For now, that threat has been staved off.Belgium has a wonderful new breathing space to carry out its reforms,” concludes Le Soir, with just a hint of sceptical disbelief.