Our industry needs a Growth Deal, a genuine growth pact, rather than a simple Green Deal. We must also conclude as many trade agreements as possible to sell our products worldwide. This was the message delivered by MR President Georges-Louis Bouchez at the annual event of Fedustria, the Belgian federation for textiles, wood, furniture and design.
“Our economic growth is lagging: barely between 1 and 1.5%, while inflation is twice as high. Costs and expenses are rising, but revenues are not keeping pace. We are becoming poorer,” explained Georges-Louis Bouchez. “The only answer is to boost growth. Public authorities must impose fewer unnecessary rules and obligations on businesses. Administrations must above all support entrepreneurs rather than control them. And procedures must become much faster, simpler and more efficient, especially for permits. These measures alone, at no budgetary cost, would already strengthen our competitiveness in a fiscally difficult period.”
The MR President met with around two hundred SME leaders from the sector. Their main concerns were unsurprising: high energy prices, labour costs, administrative red tape, competition from foreign companies, customs duties and geopolitical uncertainties.
Mr Bouchez recalled that the government has already taken decisions to improve their competitive position, notably with an energy standard that will allow energy-intensive companies to pay less. “The extension of the nuclear power plants was vital to guarantee affordable electricity. In addition to renewable energy and nuclear power, we will also need gas-fired power plants and small reactors to meet rising demand and bring prices down.”
Tax-free indexation: lower labour costs
To reduce labour costs, he wants to introduce a tax-free indexation system in the long run. “Indexation will be maintained, because working people must not lose purchasing power. But companies would only pay employees the net wage increase. That would represent only about 30% of what they pay today, since the remaining 70% corresponds to employer and employee contributions that go to the state.”
Georges-Louis Bouchez also listed several measures aimed at supporting entrepreneurs: 240 tax-free overtime hours for those who want to work more, flexi-jobs across all sectors, up to 650 hours a year for student workers, and annualised working time. All these decisions move towards greater flexibility, not forgetting a notice period capped at 52 weeks.
Finally, he called on business leaders to keep the pressure on the government. “Stay demanding and make your voice heard in the public debate. Everyone must understand that your priorities are legitimate, because they are essential to our prosperity. For my part, I will continue to defend them.”