2023-11-14 20:00:00
The result of the Brussels government’s budget negotiations will be presented this week to the Brussels Parliament. The plot is known: all administrations and public bodies will have to scale back.
Savings in the area of subsidies to businesses as export aid, according to information collected by La Libre, will be particularly drastic.
The Brussels government gives up on returning to a balanced budget in 2024: “The next legislature will be very tough”
These subsidies, in practice, are intended for Brussels companies and SMEs who want a helping hand for trips intended to prospect customers, participate in fairs, produce videos or brochures and thus make themselves known internationally.
“We are taking our first steps in exporting,” explains Gilles Grosjean Nash, director at Lunetier Ludovic, a manufacturer of artisanal glasses. We are planning a new trip to Dubai to develop our market. And to take our first steps in exporting, support is important. You have to go there several times to convince new customers.”
As for the Persoons firm, the information remains very limited.
”Decisions were in fact taken on export subsidies during the budgetary conclave. But we are not going to make any comments, the Secretary of State reserves the scoop on the information for the Brussels Parliament,” the Ans Persoons spokesperson limits himself to commenting.
Annually, 3.2 million euros
In 2023, subsidies for export companies represented a total budget of 3.244 million euros, specifies the Persoons firm. And benefit a thousand companies in total.
According to our information, during the October budgetary conclave, the Persoons cabinet agreed to purely and simply eliminate all of these export subsidies.
A report from the Court of Auditors approved on November 14 on the draft orders containing the 2024 budgets, not yet officially published but which has already been sent to the Brussels government, confirms this. This report indicates “that regulated operating subsidies to private companies with a view to promoting foreign trade are not renewed (- 4.1 million euros), due to the implementation of a structural reform of bonuses for export”. Only an amount of 1 million euros would be maintained to pay for the subsidies already allocated.
The entire foreign trade promotion policy reviewed
More broadly, the entire Brussels policy of promoting foreign trade and attracting foreign investments will be reviewed. According to the report of the Court of Auditors, commitment and liquidation appropriations will be practically eliminated. They will in fact decrease by 18.4 and 14 million euros in 2024, mainly due to the removal of provisions for expenses linked to Brexit.
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“Since this week, we have observed with all professionals in the sector that the requests for subsidies submitted are systematically refused.”
There is serious concern among certain Brussels SMEs. “Since this week, we have observed with all professionals in the sector that the requests for subsidies submitted are systematically refused,” notes Georges Caron, president of the Réseau entreprises (entrepreneur support network), who contacted the administration Brussels and the Ans Persoons office. We are an exporting country. Our SMEs, when they want to launch into exporting, need a financial boost. Touching these subsidies will have an impact on them.”
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“SMEs which have already submitted their application, or already reserved a fair, risk finding themselves without intervention. In a post-Covid and crisis context, that is a lot… If this is confirmed, Brussels businesses will suffer.”
”The regional budgetary problem is not new. We understand that it is necessary to review the eligibility conditions for these subsidies. But the decision is so unilateral and sudden…, adds Thibaut Martens, of Subsiconseils, a company specializing in advising businesses to obtain subsidies. SMEs that have already submitted their application, or already reserved a fair, risk finding themselves without intervention. In a post-Covid and crisis context, that’s a lot… If this is confirmed, Brussels businesses will suffer. This will encourage them to flee to Wallonia and Flanders, where Awex and Flanders Export do not experience this type of restrictions.”
Another possible consequence: that economic missions, like the one recently held in Australia, are limited to public and political representation, but without Brussels SMEs to highlight.
Economic mission to Australia: Belgium is banking on sectors other than beer
The Brussels government, let us be fair, has no other choice but to make savings. The 150 million euros in effort made compared to the previous budget are a far cry from the 584 million euros needed to achieve a balanced budget…
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