Government formation: negotiations must deliver results now

Every day, our entrepreneurs and business leaders feel the impact of the political stagnation. For 160 days, we have been waiting for a new federal government. For 160 days, our politicians have been negotiating in the same circles, with no visible progress. Meanwhile, the economic situation continues to deteriorate: orders continue to drop, our competitiveness is under pressure from high wage costs and soaring energy prices, and uncertainty about the future grows with every passing day. In these turbulent economic times, we need a federal government that quickly implements structural reforms and the necessary cost-saving measures, and balances the budget.

In our companies, we experience it every day: the economic climate is deteriorating, customers are hesitant to place orders, our wage and energy costs are rising, our operating margins are shrinking, weighing on future investment, we are losing competitiveness and productivity growth is too low. Our employees are feeling the consequences in equal measure: uncertainty and unrest are growing in the workplace, and employee confidence is lower than normal. The crisis is no longer an abstract concept; it is a real threat affecting investment decisions and endangering both jobs and future prosperity. We urgently need a stable federal government that will sustain economic recovery and prevent further damage.

Belgium is not only facing domestic challenges. The geopolitical situation is far from stable, with increasing economic competition between major powers such as the United States and China. The tension between these economic giants is affecting markets worldwide, and Belgium is also affected. Our dependence on international trade makes us vulnerable. In this context, the absence of a strong federal government is unfortunate, particularly at a time when the debate on a New Industrial Deal is in full swing within the European institutions. A government capable of anticipating and reacting to international developments is crucial to defending the interests of Belgian businesses in these uncertain times.

The public authorities' budgetary situation leaves no room for a passive, wait-and-see attitude. As they battle against rising costs, our businesses are also faced with new and increasingly complex regulations which, while often well-intentioned, are still pushing up their costs. The combination of increased burdens and excessive bureaucracy is undermining business performance. We urgently need a policy that breathes life into the private sector, so that we can focus on what really matters: sustainable growth, productivity and jobs. Without it, it will be virtually impossible to keep our businesses healthy.

Belgium therefore urgently needs a reform government that dares to take courageous but necessary decisions. The notes that have been circulating in recent weeks provide a sufficient basis for the rapid formation of the government. What is needed now is an effective reform programme that revives the economic engine and stimulates entrepreneurship in this country rather than taxing it further.

As employers' organisations, we call on politicians to show responsibility and determination. Confidence in our country, in our businesses and in the future of our workers depends on it.