Brexit: What is the effect on Flanders?
The UK has voted to leave the European Union in a historic referendum, leading to condemnation and disappointment among politicians and other experts in Europe’s capital
“Soft Brexit”
“Of course I deplore the outcome of the referendum to leave the European Union,” Bourgeois said this morning in a press statement. “This weakens the UK, the EU and Flanders. The United Kingdom offers huge added value for Europe on a political and economic level. But we respect the British decision, and now we have to be pragmatic and take the necessary steps for a ‘soft Brexit’.”
Bourgeois’ statements soon struck a note of melancholy. “The cultural and political ties between the Flemish and the British date back a long time and are very close,” he said. “They have allowed both nations to create prosperity and security. We were each other’s allies in both good and bad times. The British casualties of both World Wars, buried in Flanders Fields, will forever remain our precious common heritage.”
He went on to talk about the economic ties between The UK and Flanders. “The UK is a very important business partner: It’s our fourth export market. Particularly in industries where Flanders excels – like food and textiles – it’s crucial that the trade across the Channel continues. That’s why we have to strive for a soft Brexit.”
Parallel negotiations
Earlier in the week, Bourgeois had warned that a Leave vote in the British referendum could have a severe effect on Flanders’ economy. “It’s up to the British government to notify the EU on the decision to leave, after which exit negotiations can start, as specified in Article 50 of the Union treaty. These can take up to two years.”
But for Flanders, he continued, “it’s crucial that parallel negotiations begin with regards to a free-trade treaty, as extensive as possible, with the United Kingdom, in order to eliminate all tariff or non-tariff trade barriers. We have to be pragmatic in the interests of our welfare and our jobs.”
And he sketched out his vision of the future of Europe in the wake of the British decision. “The EU needs to regain trust. In order to do that, Europe needs to focus on those areas where, thanks to its scale, it can provide added value. A thorough debate on the future is needed.”
Europe needs to focus on those areas where, thanks to its scale, it can provide added value. A thorough debate on the future is needed
The government of Flanders, he said, will present its own vision for the future of the EU. “Not a leap into the dark, but an inventory of where we can reinforce each other, such as in a common digital market and an energy union,” he said. “A vision in which our starting point is a multi-layered union with clear boundaries, efficient institutions, fiscal and social fairness and a transparent decision-making process – to instil trust in both citizens and corporations.”
Belgian prime minister Charles Michel, meanwhile said that “the ball is now in the court of the British government. They would do well to announce the triggering of Article 50 of the European Treaty quickly, to alleviate uncertainty as much as possible. That will be the beginning of negotiations lasting about two years, which will look at the creation of a new type of co-operation with Great Britain. I will be looking out for Belgium’s interests and those of Europe. We must not be bitter, but their choice clearly has consequences.”
He described the situation as “a difficult moment” for European democracy. “We are waking up in a different Europe. But we need to grasp the opportunity to look ahead. The European dream is the most wonderful of the previous century. We need to find our perspective on a new dream.”
Crisis group formed
Former Flemish minister-president Kris Peeters, now federal economy minister, said the vote was “a wake-up call for the European project,” and the government would immediately begin considering the effect of the result.
“The choice of the British people will have political, diplomatic and also economic consequences for Belgium,” Peeters said. “As minister for the economy, I will be bringing together the crisis group, under the chair of Paul Buysse.” Buysse is the chair of the board of Bekaert and author of Belgium’s Code for Corporate Governance.
“The strong trade relations between Belgium and the UK have to be maintained,” continued Peeters. “Together with the crisis group and the National Bank, I will be advising the government on the impact of Brexit on the Belgian economy, and on the actions we might undertake to limit the impact.”
European Council president Donald Tusk, meanwhile, said he would be bringing together European leaders. “I have offered the leaders an informal meeting in the margins of the European council summit,” he said. “And I will also propose that we start a wider reflection on the future of our union.”
EU law, Tusk emphasised, still applies to the UK during the two-year negotiation process. “There will be no legal vacuum,” he said. “Until the United Kingdom formerly leaves the European Union, EU law will continue to apply to and within the UK. By this I mean rights as well as obligations. All the procedures for the withdrawal of the UK from the EU are clear and set out in the treaties.”
