Belgium weathered the crisis well with a relatively modest rise in unemployment. Subsequently, the economy has been recovering faster than the euro area and the fiscal deficit is falling rapidly. Nevertheless, Belgium is at a crossroads with public debt at 97% of GDP, and a renewed and sustained effort to prefund ageing costs is needed, including revisiting intergovernmental prefunding agreements. To boost subdued potential growth, measures to substantially increase employment are required while greener growth should be secured through more extensive use of environmental taxation.