Employer groups step up warnings in budget debate
Employer organisations are stepping into the budget debate with growing urgency. Ahead of next week’s three-day strike, they warn that high costs, weak demand and political paralysis are putting companies under heavy pressure.
Voka’s latest survey shows business confidence in Flanders falling sharply: three in ten large companies are now considering restructuring and one third is expecting job cuts within six months. Six in ten firms view the current climate negatively, and over half face thinner order books. Voka says the budget challenge is becoming critical, driven by high wage costs, lower demand and ongoing political deadlock. It renews its call for an index jump, arguing that Belgian wages remain far above those in neighbouring countries.
The tension around the budget is also spilling into the streets. Trade unions are planning a three-day strike next week to protest federal policy, but employer groups say the actions will only deepen the economic strain.
The VBO estimates the damage at several hundred million euros and warns that the Belgian economy is already “extremely vulnerable”, with an industrial recession, major job losses and nearly 10,000 bankruptcies. It fears the strike will undermine Belgium’s credibility with international investors at a sensitive moment. Voka adds that the strike will halt or disrupt production at one in ten Flemish companies.
Employer organisations insist the focus should be on strengthening competitiveness and making public finances sustainable rather than stopping work. They argue that giving in to pressure or delaying reforms would only worsen the budget problems and threaten future jobs.
#FlandersNewsService | People take to the streets for a joint demonstration in Brussels against the planned austerity measures © BELGA PHOTO JAMES ARTHUR GEKIERE