Belgium during the Years of the Global Economic Crisis (1929 – 1933)

Abstract

The global economic crisis (1929 – 1933) exposed the vulnerability of the Belgian economy to external shocks, as the collapse of global demand led to a sharp contraction in national production and a rise in unemployment to historic levels exceeding 20% by 1932, highlighting the limited capacity of traditional policies to protect both the economy and society. In the early stages, the government relied on strict austerity measures and adherence to the gold standard for the franc, aiming to maintain currency stability and financial confidence; however, these measures, from a legal and economic perspective, exacerbated the contraction and increased pressure on wages, prices, and domestic demand.

As the crisis deepened and social protests escalated, the need for legal and political flexibility became apparent. Abandoning the gold standard and devaluing the franc constituted a decisive step to stimulate exports and restore economic activity, while the Plan de Man of 1933 embodied the state’s interventionist vision in regulating credit and strategic sectors, seeking to balance market freedom with the protection of the most vulnerable groups, reflecting the profound interconnection between law, economics, and public policy in responding to major shocks.