Why are the international organisations based in Belgium so important for our country?

It is not for nothing that Belgium wants to attract as many international organisations as possible to Belgium. They make it easier for us to expand our diplomatic relations, enhance the image and reputation of Belgium and our capital city, and generate significant revenue for our country.

No fewer than 49 international organisations have their headquarters in Belgium, primarily in Brussels. And if we consider the agencies that form part of the UN (UNICEF, FAO, UNEP, etc.), the EU (Parliament, Commission, Council, etc.), and NATO as separate entities, that total then increases to 133.

The BBNJ Agreement

In a previous article, we already explained how the Interministerial Committee for Host Nation Policy (CIPS-ICZ) – a division of our FPS – negotiates headquarters agreements with those international organisations and ensures that they can operate effectively.

Please note that this only applies to international governmental organisations. These are organisations established by and composed of states and funded by contributions paid by their member states. The remit of the CIPS-ICZ does not extend to non-governmental organisations.

All of those international organisations often come forward on their own initiative. After all, it is in their best interests to establish a presence in our capital city so they can forge close ties with the EU and NATO.

It also happens that our country – via our FPS – actively campaigns for the headquarters of an institution to be located in Belgium. For example, we are currently hoping that the secretariat of the BBNJ Agreement – which aims to protect the high seas – will be established in Brussels.

An unshakeable belief in multilateralism

The main reason why our country adopted a policy of attracting as many headquarters of international organisations as possible lies in our unshakeable belief in multilateralism.

After World War II, Belgian policymakers realised that our security and our economic development had to be based on cooperation achieved via international institutions. That is the reason why Belgium was very closely involved in the founding of the UN, the EU, and NATO. And if many international organisations have their headquarters here, the greater our influence and involvement in their activities will be. This enabled Belgium to become one of the most visible nations on the diplomatic stage.  

The mere fact that the EU and NATO are present on Belgian soil means that foreign ministers and heads of state are flocking to Belgium almost every day. During their visit, they often take the opportunity to meet with the Minister of Foreign Affairs or the Prime Minister as well. As a result, a large part of our FPS’s diplomatic work takes place in Brussels.

The increasingly open nature of our economy also played a role in shaping our host nation policy. After all, the resulting heavy reliance on international trade made it necessary to focus heavily on foreign markets.

20% of Brussels' economy

But there are also significant economic benefits as well. Taken together, those international organisations bring far more than 50,000 people – including family members – to Belgium, accompanied by a purchasing power that is significantly higher than that of the average Belgian. According to the Brussels-Capital Region (2020), up to 20% of its economy and up to 23.2% of its employment are attributable to that international community.

A 2010 study concluded that each member of that international community spends approximately 9,000 euros annually, once the tax benefits for those international civil servants and their families have been deducted. Taking into account the rise in the cost of living, that amount comes to 13,500 euros today!

For that matter, the Flemish suburbs around Brussels are also reaping the benefits, as many expats have settled there. For its part, SHAPE – one of NATO’s strategic headquarters – employs between 7,000 and 8,000 people in the Mons area.

Here’s another statistic: the additional VAT revenue alone is estimated at more than 250 million euros per year.

An economic driving force in and of themselves

In addition, there is also a significant indirect impact. Take, for example, the NATO Communications and Information Agency (NCIA), which also focuses on cybersecurity. It outsources some of its tasks to the private sector, and many Belgian companies benefit from that.

International organisations also create an economic driving force in and of themselves. International delegations travelling to our country for meetings and negotiations, large-scale conferences and conventions boost our economy, not to mention the constant stream of experts, diplomats, and policymakers from other countries.

Hotels in and around Brussels experience peak occupancy during such events, as do restaurants and catering companies. Our airlines also benefit from this increased international mobility. Finally, service providers such as interpreters, event agencies, security firms, and transport companies also stand to benefit. All of this activity not only strengthens the local economy, but also enhances Belgium’s international reputation and visibility as a hub for diplomacy, cooperation, and knowledge exchange.

The costs are not excessive

Of course, our international host nation policy does involve certain costs, but they are not excessive. For example, our country sometimes provides office space via the Belgian Buildings Agency, or additional measures are sometimes needed to ensure security. In addition, certain foreign civil servants are exempt from taxes, or pensions must sometimes be paid out. The exact amount of those costs is difficult to calculate, as every headquarters agreement is unique.

In any case, the cost of office space is not too bad. After all, the vast majority of organisations rent office space on the commercial market and therefore do not have access to free office space. Those rental payments are therefore actually a source of income.

In short, although the exact economic value added is difficult to calculate, there is no doubt that the contribution that this makes is enormous and so compared to that, the expenses pale into insignificance. What is more, our country also enjoys significant political and diplomatic advantages.

Our current campaign to host the BBNJ Secretariat is fully in line with our host nation policy, though it is also worth noting that having the secretariat in Brussels would provide us with additional advantages when it comes to leveraging our ocean expertise as effectively as possible for the protection of our oceans.

Here you can find a list of all intergovernmental organisations with headquarters or representation in Belgium.