First European Council President

Herman Van Rompuy, an economist and Belgium’s former Prime Minister (from December 2008 to November 2009), is now the first president of the European Council.

Known as Belgium’s ‘Mr. Fixit’ for his low-key, patient work behind the scenes struggling to hold his diverse country together, Van Rompuy was strongly supported by Berlin and Paris in his bid to become European Council head. Rompuy is a committed European federalist who has a reputation for achieving workable compromises; he was summoned by Belgium’s King Albert II to serve as prime minister to deal with escalating tensions between Dutch-speak-ing Flanders to the north and Francophone Wallonia to the south and is crediting with easing the tensions which were threatening to tear Belgium apart last year. Rompuy’s other previous posts include serving as head of the Belgian Chamber of Representatives and as Minister of the Budget.

The role of the president of the European Council is to chair EU summits, drive forward the work of the EU Council of Ministers, facilitate cohesion and consensus, and represent the EU internationally. Rompuy says, “Every country should emerge victorious from nego-tiations. In the EU, even if unity remains our strength, our diversity remains our wealth.”

One of Rompuy’s first tasks in his new role was to represent the EU at the United Nations Climate Change Conference held in Copenhagen in November 2009. At the conference, he said, “The climate conference in Copenhagen is another step towards the global management of our planet.”

Former Foreign minister Values Close Ties with US

Karel De Gucht, European Commissioner for Development & Humanitar-ian Aid, formerly served as Minister of Foreign Affairs.

He plays a key role in enhancing Belgium’s international reputation for transparency, economic openness and clear strategies.

The minister points out that Belgium was one of the founding partners of the European Union and that the country continues to focus on building a stronger Europe and serving as its capital.

Belgium enjoys excellent relations with the United States, especially with the current American government, De Gucht says. “The new administration in Washington is more aligned with European politics than the previous administration was. Our country has strong and very productive ties with the United States in many areas, from business to education, and the United States is our top foreign investor,” he explains.

As Belgium recovers from the financial crisis, it is looking to the future by focusing on innovation. As De Gucht puts it, “Innovation is extremely important to the economy at this time, and it is also important to invest in green technology, as the future of our planet depends on it.

”Questioned about the possibility of Belgium separating into two countries based on regional differences, De Gucht says this will not happen because “it makes absolutely no sense for the country.” He adds that he is very optimistic about Belgium’s future because the country has survived many other crises in its long history and has the fundamentals in place to thrive fter this one as well.

Invest in Belgium

Didier Reynders, Belgium’s Deputy Prime Minister and Minister of Finance and Institutional Reforms, believes that Belgium has effectively met the challenges of the global financial crisis.

“We are not out of the crisis yet, but we are more stable, and we are quite sure that we will start to have a recovery in the second or maybe the third quarter of 2010,” he comments.

The government’s strategies for combating the crisis have included sustaining credit and issuing guarantees for credit insurance, as well as according some companies extra time to pay taxes and instituting tax cuts in 2009 and 2010 to boost consumer spending. Companies in the steel and auto industry will also benefit from tax cuts. “At the Constitution of Marseilles, we discussed cutting VAT from 21 percent to 6 percent and we are also trying to do something similar for restaurants.We are working with other EU member states to bring down gas taxes as well,” Reynders explains.

Belgium has been attracting international investors through its notional interest deduction, and Reynders says that the government has set up a commission to let companies know in advance how long they can count on this deduction, which is renewable. Belgium’s other advantages for investors, according to Reynders, include its strategic location, reduced corporate taxes, freedom from taxes on capital gains, and tax treaties that help companies avoid double taxation, among many other incentives. He says, “Brussels is burnishing its credentials as the capital of Europe. We are looking to form more inter-national partnerships.”

Ministry for Economy Encourages Foreign Partnerships

As Belgium is confronted with the global economic crisis and its effects on the country’s trade-oriented economy, the country’s leaders encourage Belgian companies to concentrate on establishing more international partnerships. The Ministry for Economy supports these companies in their international ambitions.

Belgium also pursues an active policy of attracting foreign investors, with the Ministry as part of the network of regional investment agencies and other federal, regional and local public authorities. Belgium is already the home base of a large international business community, and has built its wealth on its openness to the world, in trade as well as in investments.

Flanders Working to Preserve Jobs, Boost investment

Kris Peeters, a member of the Christian Democratic and Flemish party (CD&V), has been the Minister-President of Flanders since 2007.

He previously served in the private sector as the spokesperson for a small business organization and was propelled into the Flemish government in 2004 without being elected.

He has since become well respected among his colleagues and popular with the electorate, and has served as Flemish Minister for Public Works, Energy, the Environment and Nature.

In recent months Peeters has been working hard to preserve the General Motors Opel plant in Antwerp from closure; GM has threatened to halt production at the plant as part of its global cost-cutting campaign. Peeters has stated that closure of the plant is not justified since it managed to achieve some €3.4 million in profits in 2009 in spite of the global crisis. He has also said that he would like to see Antwerp become a hub for the production of ‘green’ vehicles.

In his current post, Peeters heads a new coalition government in Flanders whose slogan is ‘a vigorous Flanders in deciding times’. The new government is placing greater emphasis on social issues, including childcare facilities and services for the aged, as well as public transport. The new government has also promised to cut its own operating costs while continuing to invest in the local economy.

As a former business leader in the private sector, Peeters is a strong promoter of increased domestic and foreign investment in Flanders.

Wallonia: History of innovation

The Wallonia region offers significant investment opportunities, according to its Minister President Rudy Demotte.

He points out that Wallonia needs to promote its history of innovation, which ranges from the first production of radio isotopes to be used in cancer treatment, the design of the BMW X5, to the slow-motion techniques employed in telecasts of the Olympic Games in Beijing, among many other cutting-edge advances.

Because of Wallonia’s proven expertise in many fields and its focus on advanced research, it has many comparative advantages when compared to other regions, Demotte believes. Wallonia has also been ranked among Europe’s top regions for logistics in a recent IBM study, and its pharmaceu-ticals sector is one of the most successful in the European Union.

Significant American investment

Wallonia now has a budget surplus of around €14 billion, compared to Flanders’ deficit of €4.4 billion. Moreover, Wallonia has forged strong ties with the United States. “Google has a large presence here, as does Microsoft, and Baxter International recently made a very large investment in the region.Between 2000 and 2007, Wallonia attracted €5 billion in foreign investment projects that created 13,300 jobs,” Demotte says proudly.

For investors, Wallonia offers a low tax rate, the notional interest deduction, and potential financial support from the European Union. As for the future, Demotte says, “With the global economic crisis, Wallonia will have to adapt to the current environment, and look to become a leader in new fields that are relevant in today’s world.”

Banking Sector Strong, Profitable and Healthy

The Governor of the National Bank of Belgium, Guy Quaden, explains that Belgium’s banking sector is performing well in spite of the global crisis.

He says, “Obviously, the financial crisis will continue to make the economic situation difficult, but Belgium still has a very strong, profitable, and healthy banking sector.We have close to 100 banks, with ING, KBC, Dexia, and Fortis being the four largest, accounting for close to 80% of the market. One thing that is worth mentioning would be the fact that there have been no bank failures in Belgium.”

Belgium’s government has recently invested in the banking sector to protect depositors from losses in a time of crisis and to stabilize the financial sector as a whole, but considers these investments to be short term, according to Quaden. “The government has invested in certain banks to avoid their collapse, but only as a minority shareholder,” he says.

As global economies recover, Belgium’s financial sector is well placed to thrive, Quaden believes. He points out that in addition to being the home of most European institutions, Belgium is ideally located in the heart of the Euro-zone market of 330 million people, and has an open economy that is very welcoming to foreign investment.

With its state-of-the-art infrastructure, Belgium is also an ideal trade and logistics hub. Quaden explains, “Two-thirds of our products are exported, mainly to other European countries. We have much more to offer the world than just beer and chocolate!”

BDO

“We will keep up with the Big Four through our expertise and high-quality services.”

BDO is committed to serving investors and businesses by providing reliable audit and insurance, accountancy and consultancy services.

As Patrik Van Cauter, Managing Partner, explains, “BDO’s guiding principles are integrity and being close to our clients.” The company has 40 years of experience in its field and is very well known in the Belgian market. It is now working to make its brand better known worldwide, and it is also looking for more large companies to add to its client list. BDO strives to provide the best possible services and to establish long-term relationships with its clients.

BDO will achieve turnover of around €50 million this year, up from last year’s €45 million, and is ranked the market leader in its Patrik Van CauterManaging Partnerfield in Belgium. Over the next five years, the company aims to expand its global network and to boost its revenues still further to put it closer to the level of its sector’s globally leading companies. “We will keep up with the world’s Big Four through our expertise and high-quality services,” Van Cauter says confidently.

BDO already surpasses the Big Four in its close relationships with its clients. Van Cauter says, “We always establish a strong relation-ship with an individual representative of a company, even a very large company. We are able to provide truly personalized service, and this sets us apart from other leading accounting firms. Our advantage compared to smaller firms is that we have global reach and more highly developed expertise.”

As for the company’s brand-recognition efforts, Van Cauter says that BDO’s slogan ‘We are unique’ is accurate. He adds, “We are putting our brand forward and reminding our clients that they have made the right choice.”