It’s official. Belgium is in a recession. Until recently the buzzword was savings, but it seems the focus has now shifted to economic growth. How do we escape the crisis and restart the engine? Six business leaders have given their suggestions for economic stimulation. Christ’l Joris, president of the industrial and office lighting developer Etap Lighting, is also president of the technology federation Agoria. Her stance on the matter is that the government should support businesses which are still operational in Flanders; in particular innovative and labour-intensive companies, as an increase in their turnover locally and abroad would automatically result in more jobs. Caroline Van Marcke, who heads one of the most successful family concerns in Flanders, Groep Van Marcke, with her brother, believes the Flemish economy cannot be driven by services alone and should create more industrial fibre. Patrick De Maeseneire, international CEO of the recruitment giant Adecco since 2009, says: “If we fail to attract industry we will never eliminate unemployment among the lowly skilled.”
Hans Bourlon, co-CEO of the entertainment business Studio 100 and winner of the Manager of the Year award in 2008, believes that some of the textile industry’s business activities should return to Flanders from China in view of the increasing transport and oil costs, Chinese wage increases and the growth of ecological limitations. Christ’l Joris further believes the government should increase its efforts in training for technical careers and make it easier for foreign technicians to work here to solve the local shortage of technically skilled workers. Moreover she feels Belgian employees retire or take early retirement when they are too young, leaving a huge gap in the market as far as experience is concerned.
The high unemployment rate among the youth and the not so highly skilled is another fundamental problem. To address this issue, De Maeseneire believes the younger generation should receive preference in the job market so that they can at least gain experience. Wouter Torfs, CEO of the family shoe business Schoenen Torfs and one of the stalwarts in the Flemish retail industry, feels the unemployment trap should be addressed. The difference between unemployment benefits and the starting wage should increase to motivate the unemployed to work. He also feels buying power should be protected, stating that consumer confidence relies on income, job and pension security, which therefore should be maintained. Says Torfs: “We should seek a mechanism that will ensure the consumer retains his buying power after tax without increasing wage costs for the employer.” Demaeseneire believes the state has only one option to create room for an economic stimulus and that is cutting back on social security. Torfs feels an orthodox policy regarding public finances should be reintroduced, saying: “We cannot burden the next generations with debt.”
According to Jo Van Biesbroeck, regional director for Western Europe of the world’s biggest brewer AB InBev, national and European sovereigns and institutions should introduce both carefully considered savings and investment measures. Van Marcke agrees, finding Europe’s approach too one-sided and too much focused on debt relief. She is in favour ofr supporting growth in the PIGS (Portugal, Ireland, Spain, Italy, Greece) countries. Politics and business should develop a long-term vision, she believes, and she adds: “The dictates of quarterly figures will not help us ahead. Businesses will not invest as a result. We should consider how we plan to distinguish our economy from others in the long term.” Van Biesbroeck is of the opinion that the available means should be put to good use and more should be invested in innovation. These are principles which apply to both the private and public sector. But they should be carefully explained to employers and the population at large. According to De Maeseneire, the current budget does not allow for public stimuli, so Belgium and Western Europe should become more attractive for investors and businesses by making wages competitive and taxation simple. Finally Van Biesbroeck believes Europe should streamline its labour market policy to ensure the different countries remain competitive.