Intervention op Yves Leterme at the opening ceremony of ICBC BRUSSELS BRANCH
19/01/2011
Mr Chairman, Excellencies, Ladies and Gentlemen, The opening of the Brussels branch of ICBC is an important event for your bank and I would like to wholeheartedly congratulate you and to wish you every success with your business.It is also important for Belgium because ICBC is the largest bank in China and in the world in terms of market value and one of the world’s top ten banks by assets. Your presence in Brussels is a vote of confidence in the Belgian economy and in the future of our economic relations.When we met in June last year, ICBC was already present in about 20 countries outside China, amongst which 3 in Europe, and you were planning to set up branches in 5 other European capitals, Paris, Milan, Madrid, Amsterdam and Brussels. Your decision to open the Brussels Bank was taken – as you told me – after a thorough market analysis featuring some important assets of Belgium : its location at the heart of Europe, its status as a host nation for an impressive number of international institutions, enterprises and associations, its open economy, its better performance compared to others during the economic and financial crisis, its important tax incentives and also the presence of already more than 230 Chinese companies.These are indeed our master cards. As to Belgium’s economic performance, the 2010 forecasts have been confirmed and even exceeded. The latest figures show that Belgium outperforms the euro area with a real GDP growth of 2.1 % in 2010 compared to 1.6 % in the euro area and of 1.8 % in 2011, compared to 1.4 % in the euro area. The excellent performance of our economy is based on good economic fundamentals. We have a positive current account balance. Moreover, Belgium is a rich country with net financial assets on the rest of the world of 50% of GDP. This is due to low debt ratios for households and companies and the high savings ratio of households. End 2008 households held net assets of 180% of GDP which is an impressive 70% higher than the euro area average.The robust economic growth and the sound fundamentals combined with a strict budgetary discipline have resulted in a reduction of the annual budget deficit to 4.6 % of GDP in 2010, which is lower than our target under the European stability pact, and which places the Belgian budget deficit amongst the six lowest in the euro area, performing better than countries like France, Italy and the Netherlands. For 2011, the Belgian government decided last week to further reduce this deficit under the 4 % of GDP, again well ahead of EU targets. In 2010 we had the smallest debt increase of the euro area (only 1%) . In 2011 our debt ratio should only increase marginally. It is important to stress these positive features and trends, because they highlight some of the very sound economic fundamentals of the Belgian economy. The agreement in principle reached yesterday between representatives of the trade unions and of the enterprises builds on these premises and offers some clear perspectives, including on a balanced evolution of wages for the years 2011 and 2012, which is important to ensure the lasting competitiveness of the Belgian economy for the years to come. This agreement was possible notwithstanding the actual political difficulties, which shows the strength of the relations between social partners in our country. I consider it as one of the main tasks of my caretaker government to preserve the vital interests of Belgian citizens, companies and its economy.Mr. Chairman, the opening of your branch will of course benefit the economic relations between China and Belgium. You will work as a bridge builder between our economies, helping Chinese companies investing in Belgium and Belgian companies to invest in China.More than 250 Belgian companies have currently invested in China, and, as I said earlier, more than 230 Chinese companies are established in Belgium. Our trade volume exceeded 15 billion euros in 2010. Belgian exports to China increased with 30 % during the first half of 2010 compared to the first half of 2009. And there is no reason to doubt that this trend will be pursued.The opening of your Brussels branch coincides with the 40th anniversary of the diplomatic relations between our countries and with a period of intensification of these relations. Vice-President Xi Jingping visited Belgium in 2009 and Prime Minister Wen Jiabao did so in 2010. An economic mission led by His Royal Highness Prince Philip will take place in the Autumn of 2011 and we very much look forward also to a State visit of President Hu Jintao in the near future. These numerous contacts at the highest level are a signal of openness and willingness to cooperate. In the economic field, they are intended to accompany and facilitate mutual investments and trade. Let me stress in that regard Prime Minister Wen’s call, during his visit to Brussels, for Europe to further invest in China, and his promise that China would continue reforms to improve the investment climate and to achieve sustainable growth and development. Mr. Chairman, Excellencies, Ladies and gentlemen, let me conclude by reiterating my wishes of success to ICBC in Belgium and by extending these wishes to all of you. Just as Belgium is ahead of schedule for reaching our European budgetary targets, let me be slightly ahead of schedule in wishing you all a happy Chinese New Year.
