2023-12-13 09:36:00
For Cécile Neven, the new general administrator of the Walloon Business Union, the financial situation of Wallonia is disastrous, to the point that it risks bankruptcy.
Editorial staff 13-12-23, 10:36 Last update: 13-12-23, 12:04 Source: Bel RTL
“We have a three billion deficit. If the Walloon government is moving in the right direction in terms of trying to reduce the deficit, the Walloon budget remains a headache. It is an illegible document. To locate a line of structural savings, you have to get up early. It remains very complicated,” she analyzes.
She even goes a step further by mentioning a possible “bankruptcy” of Wallonia. “I think so. I think we absolutely need to straighten things out. We absolutely must reserve investment capacity for structuring projects for the transition. We are absolutely faced with this. Our children and our grandchildren will never forgive us for leaving them a debt that is unpayable because we chose to live beyond our means,” she continues.
The two main difficulties for the “boss of bosses”? Lack of priorities and fragmentation. “For me, our leitmotif is really to prioritize,” she added.
Government action must continue fully until June 9, urges UWE
The action of the various governments must continue fully until June 9, the day of the federal and regional elections, urged the Walloon Business Union (UWE) on Monday in its December economic update. “Any slowdown in public action, a frequent phenomenon during (pre)electoral periods, would be extremely damaging for businesses, jobs and the transition of our society,” she warns. Major structural reforms will then be essential and must be on the agenda of the next regional government, insists the employers’ organization.
According to the results of the economic survey carried out among Walloon entrepreneurs, economic activity shows signs of stabilization. This perspective was expected, explains the UWE, given the degraded international context.
Although Walloon exports had already marked a significant contraction at the start of the year (-9.3% over the first 6 months), the outlook remains unfavorable for the coming months. Although it has been decreasing for several months, underlying inflation remains at a high level (6% in November), and the trend is similar in the euro zone, adds the UWE, according to which an easing of monetary policy remains quite improbable in the short term.
40,000 positions to be filled
However, and despite relatively high interest rates, investments by Walloon companies seem to be resisting, notes the employers’ organization. In his eyes, this situation is explained by the impossibility for Walloon entrepreneurs to postpone their investments indefinitely. Engagement prospects show relative resilience in Wallonia, notes UWE. Many positions still remain unfilled (more than 40,000), and many companies choose to retain their staff, despite falling demand, to avoid the hazards of recruitment procedures.
To find solutions to this gloomy situation, entrepreneurs will need assurance from authorities, both regional and federal, that their framework will improve, insists the Walloon Business Union. “In the short term, this means that the action of the various governments will have to continue fully until June 9.(…) In the medium term, it will be necessary to design and carry out structural policies including Wallonia, and more widely in Belgium, are in dire need,” invites the organization.
And the UWE recalls the priorities of its electoral memorandum presented in mid-November: the mobilization of talents, the energy transition, research and efficient public action. “The current economic context does not allow for any relaxation. Crucial issues for our future remain to be completed, such as the reform of adapted support for job seekers, the reform of the Environmental Permit, the reform of investment aid, etc. Our message is clear: Wallonia cannot afford a slowdown in public action,” concludes Cécile Neven, CEO of the Walloon Business Union.
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