Belgian employers and trade unions have warned the negotiators of the next Federal Government to ensure that the country's socio-economic system can "cope" with the upcoming societal changes and geopolitical context.
Addressing the negotiators of the five parties trying to form the federal Arizona coalition (N-VA, MR, Les Engagés, CD&V and Vooruit), a consortium of economic players have sent a joint letter urging it to not exclude the voices of workers and unions when tackling the demographic, technological and environmental transformation facing Belgium (but also Europe).
It is the first time in at least a quarter of a century that such a letter has been sent in Belgium. Signatories include the Central Economic Council (CCE), the Socialist and Christian trade unions (FGTB and CSC), the Federation of Enterprises in Belgium (FEB), the Flemish Union of Independent Entrepreneurs (Unizo) and the Walloon Federation of Agriculture (FWA).
These different actors have a unified message: "Our country is facing a triple transition: environmental, technological and demographic," the letter, seen by The Brussels Times, states. "Our socio-economic system must be sufficiently resilient to cope with these three transitions and the changing geopolitical context."
The economic council stresses that the EU framework will be "crucial" to the achievement of this threefold transition. Indeed, much of the letter echoes the words of former European Central Bank President Mario Draghi.
"It's exactly the same message as Draghi," Secretary of the Central Economic Council, Luc Denayer, told The Brussels Times on Thursday. "It's to say that we are at a key socio-economic moment, at the European level, but also at the Belgian level, and that's why the letter was sent."
'Do it with the people'
In light of the immense challenges ahead, Belgium must completely reform its socio-economic system – not modify it at the edges. The next government will need to create a model that is competitive, inclusive and financially, socially and environmentally sustainable, it stressed.
"We are in a new technological wave. Our working-age population will start to stagnate. These are major factors that will completely transform our socio-economic system," Denayer continued. "There are fundamental transformations that are going to have to take place. And the message is that we have to do it with the people, with the social players."
Demonstration of the three main trade unions in Brussels, Monday 22 May 2023. Credit: Belga / Laurie Dieffembacq
The letter also highlights the lack of a coherent policy in Belgium on the energy transition, housing, sustainable mobility and boosting productivity. On all of these important issues, the next government should take in the concerns of the greatest number of citizens, workers and companies.
Developing qualifications and skills, boosting public investment, and encouraging the emergence of innovation, while also keeping costs of the transformation low and including trade union voices, can help create economic policies which enjoy the broadest consensus across society.
For example, many sectors that will have to be decarbonised by 2050 (housing, transport, energy-intensive businesses and electricity production) under Belgium's EU environmental targets. For this, a "balance will have to be found, for each of these sectors, between changes in behaviour, investment and technological progress," the letter reads.
Given that a policy that improves one aspect of the economy, can often have knock-on effects that can worsen another, the Council is putting its services forward as a key platform, uniting different players from employers to unions, can help the next government navigate the different challenges across the socio-economic sector.
"Use the institutions that exist and the knowledge that has been built up in the institutions, on these themes that we feel are essential, as part of this transition," Denayer said.
De Wever not the target
Meanwhile, the same current government negotiators have been criticised by trade union bosses for the socio-economic proposals put forward by N-VA leader Bart De Wever, with one union saying it is "the greatest social regression in 80 years."
However, Denayer stressed that this letter was not written in response to De Wever’s so-called super note [proposals], particularly as the note included a chapter on social partners, he added.
N-VA leader Bart De Wever takes a selfie before a meeting at the Royal Palace, Thursday 22 August 2024. Credit: Belga/Eric Lalmand
"It's not a criticism of what the [next] government will do, it's really just an offer of service," Denayer continued.
Moreover, the CCE secretary reiterates that as part of a major transformation, it's "important to create consensus in society and for politicians to listen to society as a whole," and the organisations behind the letter stand happy to help.
"The future government must be able to take account of this social consultation when it is drawing up its socio-economic policy," he said. "This is the what of various socio-economic players are saying. Now it's the government's responsibility to act. It's up to the elected representatives."
Will they listen? "We'll have to wait and see."
