Belgium is a federal constitutional monarchy and founding member of the EU, with Brussels serving as the de facto capital of the [[European Union (EU)]]. The country's economy is highly developed and diversified, benefiting from its central location and role as a major logistics and administrative hub. Key economic sectors include services, chemicals, pharmaceuticals, food processing, automotive, and diamond trading (Antwerp is a global diamond center). As host to many international institutions (EU, NATO), Belgium has a significant diplomatic and administrative sector. The economy combines strong private enterprise with comprehensive social services, though it faces challenges with regional economic disparities between Flanders and Wallonia, high public debt, and complex governance due to its federal structure divided between Dutch-speaking Flanders and French-speaking Wallonia.