I believe 'liberal' has really varied connotations depending on the country you're in. Just as 'conservative'.
What I am mainly referring to is the public debate in the US, where people who want a greater role for the state, socialised medicine, etc., basically a slightly more social democratic model of governance, are called "liberal" scum who want a communist regime (perhaps I'm exaggerating slightly...), which isn't quite what liberalism is about. Granted, there are many 'different' kinds of liberalism, but the reason why in Belgium, as D_S noted, or elsewhere in Europe, 'liberals' are usually placed on the right side of the political spectrum is because they identify with classical liberalism (which is why I mentioned Mill - the state's role should be minimal in order to secure complete individual freedom, so that the individual may realise his/her full capacity, etc.).
Basically, there is a difference between
social liberalism,
classical liberalism and
market liberalism, but each distinction tends to mean the same all over the world. It seems only in American public discourse that liberalism is conflated into one single meaning, namely that of social liberalism, advocating positive liberty. Thus, people who want a welfare state are called liberals there, whereas we would associate them more with social democracy here. But perhaps my exposure to US public debate has been somewhat limited (since I don't live there), so if I'm mistaken and the average American's conception of what is "liberal" just happens to be more nuanced, then I guess I should read more. But in general, I find it confusing, sometimes, to read American political viewpoints that claim that wanting a state-regulated market is a trademark of being liberal.