Targeting Europe? Be where the business is INVEST IN BRUSSELS!

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1 Targeting Europe? Be where the business is INVEST IN BRUSSELS! 1

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3 Europe is a mosaic of markets, each with its distinctive cultures, communities and characteristics. Choose to locate your business in any one of them and you distance yourself from the others. There appears to be no easy answer to this dilemma. Yet there is. INVEST IN BRUSSELS! Here are eight reasons why. 1. CENTRALITY 2. ACCESSIBILITY 3. INTERNATIONALITY 4. VIRTUOSITY 5. VERSATILITY 6. INGENUITY 7. POPULARITY 8. FINALITY 3

4 The Blue Banana (also known as the European Backbone ) is a discontinuous corridor of urbanisation in Western Europe, with a population of around 110 million. It stretches approximately from the English Midlands in the north to Milan in the south. 4

5 CE NTRALITY The Brussels-Capital Region is central to Europe in every sense of the word. Home of the European institutions, it also neighbours Western Europe s most important markets: Germany, France, the UK, the Netherlands and Belgium itself. International status Brussels furthers its claim as capital of Europe not only by the presence of major international institutions - the European Commission and other EU administrations, NATO, SHAPE and nearly 100 of the world s most important business and trade NGOs - but also because it sits on the cusp of Western Europe s two dominant cultures, the Germanic and the Latin. To the north of the city lies Dutch-speaking Flanders, to the south Frenchspeaking Wallonia. 1 Brussels is an outstanding place to have your European operations. Fernando Becalli-Falco, President and CEO of GE International Home to business Brussels is one of Europe s most important business cities, with some 1,700 international corporations operating Europe-wide from the capital, including global entities such as IBM, Toyota and Coca-Cola, and a large community of SMEs. Moreover, Belgium s location and language diversity make it an ideal logistics centre for exports to other European markets. Boasting a comprehensive and up-to-date infrastructure, the country is an excellent transit and distribution point for the rest of Europe. In short, Belgium is the most strategically located country in Europe, situated in the heart of a consumer market of over 500 million Europeans. For anyone trying to target such a wide and diverse audience, Brussels is the city of choice. Moreover the Brussels-Capital Region, like the many international institutions it hosts, is unaligned and neutral in its strategies and actions. Open to all the European Union s member states, it offers you unbiased and unrestricted access to all of Europe. 5

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7 ACCESSIBILITY 2 Travelling from Brussels to the other business centres of Europe is easy Rail All railroads lead to and from Brussels! High-speed train services, increasingly popular as a point-to-point option, are supplanting air travel with its uncertainties and delays. Brussels is at the nexus of these major inter-city services, notably to and from London (two hours centre-to-centre), Paris (90 minutes) and Cologne (80 minutes). Air If you prefer to fly, then you have a range of options: Brussels National Airport, served by over 60 major carriers, and less than 30 minutes from the city centre by car, taxi or shuttle train. The airport has been awarded the distinction of Best Airport in Europe for several years in a row. Brussels South, low-cost and feeder airline terminal, 45 minutes from the city centre by car, taxi or shuttle bus. High-speed train connections to international airports at Lille, Paris, Amsterdam, London, Cologne/Bonn and Düsseldorf. This is the epitome of cutting-edge rail travel, with every amenity considered. Road Multi-lane motorways link Brussels with Paris, London via the Channel Tunnel, Berlin via Cologne, and other European capitals further away. KEEPING THE TRAFFIC MOVING The issue of inner city mobility, a side-effect of the city s success in attracting new investments, is now being tackled aggressively by the Brussels regional authorities, with developments planned for both the streetcar and rapid transit networks. Use of public transport has increased rapidly over the last decade. In the words of Brian Gardner of the Economist Intelligence Unit: The city has improved dramatically in the last two years and, from what I have learned, will continue on this path. 7

8 BRUSSELS: PRAGMATISM, CREATIVITY AND SERVICE ORIENTATION The entrepreneurial spirit is evident in many aspects of Belgian business life. One example is provided by the Indian IT manager of a major global corporation with its EMEA division based in Brussels. Not long ago, he subcontracted parallel projects to Belgian and foreign suppliers. As he describes it, the foreign suppliers proved infuriatingly bureaucratic and officious, while the Belgians interpreted his needs intelligently, improvising where necessary and giving him exactly what he wanted

9 INTERNATIONALITY 3 The Brussels-Capital Region is internationally oriented. The city hosts a multicultural and multilingual community renowned for its openness - openness both to outsiders and to change. Belgium has three official languages - Dutch, French and German - so language skills come naturally. Most employees have English as a third or fourth language. Outstanding work ethic Belgian workers are among the most productive in the world. In the words of Robert W Elliot, President EMEA of the FedEx corporation, the workforce in Belgium is highly educated, multilingual and has a very strong work ethic. A study conducted by the Vlerick Business School identifies a number of qualities, notably a strong sense of compromise, loyalty and commitment toward the company he or she works for, a relatively open mind (relative to the closed mentality of some surrounding countries and cultures), a remarkable command of languages, a hands-on approach to problems, and modesty. The default mentality of employees in the Brussels-Capital Region is pragmatic and cooperative. There are only rare instances of labour disputes and, where they do occur, they are rarely over issues of principle. A highly developed sense of community ensures that Belgians are generally committed and loyal to their fellow-workers and, consequently, to the organisations they work for. Belgians are great change-makers and great team-builders. They are very open, natural mediators and sensitive to other cultures. Baldwin Klep, Dutch human resources consultant Getting the job done The individualistic mindset of Belgians is compatible with their basic human instincts. Pragmatism and flexibility in difficult circumstances are common features. People will judge the situation according to the circumstances - and fellow-feeling will often be the final arbitrator. The person will say to you I m not supposed to do this, but - and then do it out of human sympathy or good nature! The absence of any apparent arrogance helps Belgians mediate and encourage solutions that everyone can buy into, says a Swedish executive search consultant. Not having an overblown ego helps avoid blockages in discussions and negotiations, as does denying yourself the luxury of believing that your opinion is the only correct one. 9

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11 VIRTUOSITY 4 The city is an ideal test market for developers wishing to enter Western Europe. The Region lies on the borderline between the Germanic culture (Flanders to the north) and the Latin culture (Wallonia to the south). Statistics compiled by the European Commission show that the Brussels- Capital Region is the third wealthiest region in the EU 1. A kind of mini-europe Because of its spirit of openness and its cultural complexity, many international corporations use the Brussels-Capital Region as a test market, both to verify characteristics found elsewhere in Europe and to learn from domestic differences. The Brussels economy also reflects the overall European economy and consumer attitudes - a kind of mini-europe. The Belgian is a sophisticated consumer who looks for the right balance between quality and cost. Dutch, French and, to a lesser extent, German language divisions define the consumer characteristics of the Belgian market, so the right labelling and marketing strategies are of critical importance. Tastes can differ within even a small country like Belgium. Take coffee for example, where Flanders and Wallonia and even individual towns have different preferences. British Brussels-based consumer strategy consultant ALSO A EUROPEAN LEADER IN CLINICAL TRIALS A recent survey conducted by the Deloitte consultancy concludes that Belgium is also a European leader in clinical trials, with the highest per capita rate of pharmaceutical drugs under development in Europe. The authorities have taken measures to keep approval times among the shortest in Europe: 15 days for Phase I and 28 days for Phase I-IV. This provides life sciences companies organising trials in Brussels with a competitive advantage over other European regions. 1 Eurostat

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13 VERSATILITY 5 There is a lot more to Brussels than its reputation as the home of the European institutions, themselves served by a vast private-sector community of law partnerships, information bureaus, and public affairs consultancies. But the economic life of the Brussels-Capital Region is in no sense restricted to the administrative and service sectors. Much more than a service city, it is home to major corporations active in manufacturing, R&D, and marketing. Some examples: Audi (D) Figures from Audi s Brussels operations, the single production site for the A1 and the A1 Sportback, show that the city s environment and employee motivation suit manufacturers well - to the extent that the company has invested 200 million in the site. Audi reports that, thanks to a strong work ethic, wage costs are competitive with those of other manufacturing units in Germany. The city has since established an ultramodern logistics and supply centre, Automotive Park, to service Audi and other companies. Audi acquired an ideal European manufacturing location with its Belgian facility. In 2012, the company delivered 123,111 Audi A1 s - produced by a highly qualified and very motivated workforce. Coca-Cola (US) Brussels is the home of the corporation s second largest innovation centre in the world. A team of 170 experts, representing 20 different nationalities, are responsible for an annual average of 350 innovations, serving 108 markets in Europe, Eurasia, Africa and the Middle East. Coca-Cola has invested 15 million here in the last five years. Audi Germany website 13

14 Schneider Electric (F) As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments. Focused on making energy safe, reliable, efficient, productive and green, the Group s 140,000 + employees recorded sales of 24 billion in Schneider Electric has been developing its sales and industrial activities in Belgium for more than a century. Schneider Electric Belgium employs 620 people in the country, of whom 460 are employed on the company s Brussels site. Galactic (B) Specialised in the production of lactic acid and other fermentation-based products, Galactic is one of the world leaders in biotechnology serving the food, pharmaceutical and industrial sectors. Its 4,000m² state-of-the-art technology centre, inaugurated in 2013, provides R&D services to clients in all these fields. The Galactic Innovation Campus also hosts innovative biotechnology SMEs in fully equipped laboratories, together with supporting technical and administrative services. A CROSS-BORDER MERGER BY ABSORPTION In late-2013, Viohalco-Hellenic Copper and Aluminium Industry SA took the decision to move its operational headquarters to Brussels. One of Greece s major industrial corporations with some 8,000 employees and a turnover of 4 billion euro, Viohalco chose to have its Belgian subsidiary absorb the parent company. The reason? Planned membership of the Euronext Brussels exchange and access to more flexible credit facilities. 14

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17 INGENUITY 6 The Brussels-Capital Region draws on the R&D resources of three universities, numerous other educational institutions, and multinational corporations. In total it fields a scientific and researcher workforce of nearly 16,000 specialists. Coherent regional strategy The Region s innovation potential is enhanced by the synergies of a series of administrative and scientific institutions: the Scientific Policy Council (CPS), the Agoria organisation, Research in Brussels (RIB) and Impulse (Brussels Enterprise Agency). Particular target areas of expertise include the ICT, healthcare, security and transport sectors. The FNRS scientific research fund of the Wallonie-Brussels Federation also helps shape research strategy and provides support to individual institutes and teams of researchers. In a recent study 1 the Deloitte consultancy firm concludes that Belgian R&D incentives are unparalleled elsewhere in Europe. Various investment deductions and tax credits exist for research and development activities. A majority of the innovation leaders are capital regions in the EU15, including the Brussels region. European Commission DG Enterprise website Extensive tax relief In the case of patent income, companies established here can deduct 80% of income from royalties and income deemed to be sourced from patented intellectual property. Companies established in Belgium acting as the principal in a centralised business model can also apply an excess accounting profits ruling. Moreover, provided they meet certain conditions, researchers working in Belgium can also recover up to 75% of the withholding tax on their professional income, resulting in an average effective tax rate of 25%. The resultant costs to employers are cut significantly, giving them a major advantage over competitors in other western European countries. Deloitte has found that none of the other countries investigated have such an advantageous in-built system. Under the notional interest deduction system, companies and branches established in Belgium are entitled to deduct an interest expense, in connection with qualifying equity. 1 Deloitte Highlights on International Tax,

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19 POPULARITY 7 The Brussels-Capital Region earns accolades from international studies that confirm the enthusiasm of individual investors. In the latest Mercer Quality of Living survey, Brussels comes 22 nd of 221 cities worldwide in terms of 39 factors important to the growing community of expatriates. These include the presence of international schools, housing availability and leisure activities. 1 According to the Union of International Organisations, the city is also the world s second most important conference centre. Belgium rates N 13 in this year s list of the World s Most Reputable Countries. 2 Country RepTrak is a global analysis of more than 34,000 ratings collected from more than 27,000 consumers in the G8 countries. It confirms the link between country reputations and economic outcomes. Countries are assessed in terms of four criteria - reliability, reputation, attractiveness, respect - as well respondents perception of such aspects as traveller safety, natural beauty and welcoming attitudes. Brussels is a multinational gem at the heart of the continent. BBC website 1 Mercer Quality of Living report Reputation Institute

20 The Ernst & Young Globalisation Index issued in advance of the 2013 Davos Summit of the World Economic Forum ranked Belgium World Number Four in terms of the openness of its economy. 3 Developed in conjunction with the Economist Intelligence Unit, the E&Y index draws on a comprehensive understanding of the underlying drivers for globalisation in terms of five main criteria: openness to trade, capital flows, exchange of technology and ideas, labour movements, and cultural integration. The Ernst & Young consultancy also attributes Belgium s rating in international studies to a high level of education, a low incidence of corruption, the innovative skills of Belgian industry, and the administrative simplicity of launching or winding up a business. 4 Endorsements of these findings come from many influential investors (see box below). BERNARD ARNAULT COMMITS 2.1 BILLION EURO TO BELGIUM In 2013 French financier Bernard Arnault confirmed his commitment to Belgium as an international operations centre. Having moved his holding companies to the Region over the previous two years, he buttressed them with transfers of more than 2.1 billion euro. Arnault s flagship company, LVMH is headquartered in the Brussels- Capital Region and owns the Dior, Louis Vuitton and other brands E&Y Globalisation Index E&Y Global Venture Capital Private Equity (VCPE) Country Attractiveness Index 2013

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23 FINALITY 8 Brussels Invest & Export is the promotional agency for the Brussels-Capital Region. The agency provides tailor-made, cost-free professional and confidential advice and assistance to help companies and individuals develop a presence in the European capital. Brussels Invest & Export also offers incubator facilities for start-up businesses on its premises in uptown Brussels. In Belgium, the power to grant public financial support lies mainly with the regional authorities. The Brussels-Capital regional government offers different types of grants: for investments, research and development, or employment and training. An overview of the most important grants available to a foreign company setting up in Brussels can be found on The government is now bringing in new measures to provide assistance to small businesses operating in the Region. The plan is based on the identification of free zones, in line with European Union legislation, which will be singled out for special support measures. These measures take three forms. First, a grant of 30% of the firstyear salary of an employee (15% in the second year). Second, a grant of 25% of the general expenses of SMEs (35% of microenterprises), provided local employees represent at least 30% of the manpower of these businesses. Third, a partial reimbursement of the tax on office space for companies employing at least three persons, of which one-third live in the zone concerned. CONTACT : INVEST IN BRUSSELS Avenue Louise, Brussels +32 (0) info@investinbrussels.com 23

24 Printed with vegetable inks on FSC certified and recycled, chlorine-free Responsible publisher: Peter Michiels, Avenue Louise 500/4, 1050 Brussels Texts: Richard Hill - Design: