Prime Minister, Happy New Year, and it seems to some extent is a happy New
Year. Gas prices have gone down.
This whether from how did not manifest you look at the temperatures is mild,
the usual. And we have a big investment bank,
Goldman Sachs, saying we no longer predict a recession for Europe in 2023.
Would you say the worst is over? Well, that's hard to say that it's a set
off for sure. But indeed, yes, it's a it's a happy new
year in the sense that, well, first of all, we wish each other that 2023 three
would be a better year than last year. Last year was a complicated year and in
Europe. And we obviously wouldn't want that this
war ends in the year that that comes. But indeed, if you look at the economic
indicators, indeed, the fear for a recession is is diminishing and there
are good reasons for that. One of the reasons is indeed on the
energy side, a number of things have helped.
I think, first of all, the agreement on the gas price cap was unless you were
allowed to push for a lot. And it is a strong indication that in
Europe we will not pay these very high prices anymore.
Of course, as well, very instrumental is the fact that there is more supply
coming and that especially big countries which are dependent on Russia, such as
Germany, have found other sources of gas and the fear of gas shortages has been
reduced significantly. Belgium also played an important role in
that because we expand that's all the capacity of throughput towards Germany
that we have for LNG. And of course, you say it's early to
tell, but is there a point where you say, OK, the situation is stable?
Will it be when inflation really comes down and stays stable on that front?
Will it be when the consumer bills actually go down?
What are the indicators that you yourself do look to say, OK, now we're
fine? Well well, of course, I think that when
you see that the gas prices are going down, you can expect that the consumer
bills are going to go down. But that indeed is the key thing,
because that's what is driving inflation.
That inflation that is driving up, especially in countries with automatic
indexation such as Belgium, is driving the wages up, which is actually
hampering our competitiveness. And so prices going down is good, but it
will take some months before the consumer will see it.
And in the meantime, of course, we see that we are in a geopolitical
competition and that is mostly with the United States today.
Their Inflation Reduction Act is something which which could be
threatening for for industrial activity. And in Europe and there we really need
to act as European bloc today. Too often we see that countries are
competing one with another within Europe.
And we think we're competing with another.
And behind our backs, the United States is pulling away potential investment in
industrial activity. And that was a perfect segue into my
next question. What happens if there isn't a deal on
this inflation reduction act? I know you've said they have to address
our concerns. There are partners, but they need to
address these issues. Do you predict that potentially there
may be a trade war? Is that something you really want to
avert? I think a trade war leads to everyone
losing. And I think we need to avoid that.
And yes, I think certain issue needs to be addressed.
But we also need to do our homework within Europe.
Industrial activity is really moving up on the agenda.
Five years ago, industrial policy wasn't really the most sexy topic today.
Everyone understands that keeping industrial activity, keeping having this
rich is just chemistry. And so I'm keeping that here in Europe
is of geopolitical importance. And this is another industry.
We've seen that with life sciences. We've seen it with semiconductors.
We now see heavy industry. Everything is becoming more
geopolitical. And that means that as a European Union,
we also need to act in a more geopolitical and make it here,
essentially. Don't blame others or potentially say, I
think that yes, if there are certain things on ISE which would be unfair
towards the relation between United States and Europe, it needs to be
addressed. Really, we need to be our homework and
see what the impact is of energy prices, energy supply on our on our activity.
Here in Belgium, for example, we decided yesterday extending nuclear reactors for
10 years. This is an important sign to show that
we are taking back control on our energy supply and we know that this is
important for industrial. And what was the rationale behind that?
Because it wasn't an easy decision. And this is a controversial topic.
And some people feel very much against nuclear.
What you're saying is essentially we have to be realistic.
We need to secure supply. And that means that it's part of a
diversified portfolio. This will not hamper our development in
renewables. We have plans of expanding our
renewables with offshore wind and in a very drastic way.
Belgium is a pioneer in this domain. But we will need a lot of renewables and
we will need some girls and we will need nuclear.
And the better diversified we are, the more stable we are in.
Supply Belgium is a country with a lot of expertise in nuclear.
Extending the most the two youngest reactors.
Is this something to do? We are also getting into the capital of
that activity. So it's a bit taking back control as a
government in an activity that we see really as crucial to to have more
control. And of course, Russia as an energy
supplier by now it's understood its over.
That said, the relationship, I think that's quite that's quite clear that we
want to detach from Russia as an energy supplier, also become less vulnerable
and less dependent on fossil fuels. And in general, for multiple reasons,
climate change is one, but also just strategic issues is another.
And Prime Minister, just a final question.
Of course, it's another year of war and Ukraine and we think a lot about the
people in Ukraine and everything they've gone through this year.
The Ukrainians say it's time to provide the heavy weapons.
There's a lot of debates about tanks and some that say this needs to be won
militarily. Just give them whatever they need to
wrap this this year. Do you agree with that?
Well, five minutes ago, I had a phone call with President Alinsky.
So right before this, I wanted to tell you.
And this is his demand. And is demand is to have more heavy
military equipment. We are looking into this.
Of course, we are providing multiple sources of support.
Some of them is on the material side. Other things are platforms for
intelligence gathering and so on. So that a lot of the successes that that
Ukrainian armies is is getting in these days is because of equipment, but also
because of intelligence and other types of support.
But the demand really is indeed for armored vehicles, artillery, tanks.
And Tom, I think like all European countries, we're looking into what is
possible in a short term basis because we know that the next month are going to
be crucial and that includes tax potential.
Even in our case, we don't have things. So.
So it's a German depression, but it's a general general question.
I think every country is looking into what is possible.
But I think it's quite clear that the next months really could be pivotal
months in the war in Ukraine. And we need to continue providing them
with support. And you still believe Ukraine will win
the war? I think we it's our commitment that
Ukraine wins the war. Well, Prime Minister, thank you so much.
Always good to see him, Lumbergh. Thank you.
My pleasure.