The Belgian government is expected to privatise national telecoms operator Belgacom further in 2000, most likely via a flotation that could value the company at about €10 billion, analysts said. The pro-business government, which earlier this week said it would not make a decision on the future of its 50.1 per cent Belgacom stake until next year, has insisted that all options remain open - including doing nothing.

But its stated desire to use proceeds from privatisations to cut its budget deficit and the market appetite for telecoms stocks make a sale almost a certainty.

A consortium of US phone giant SBC Communications, Tele Danmark, Singapore Telecoms and Belgian investment groups holds a 49.9 per cent stake in Belgacom.