Overview
Belgium’s political and economic landscape is defined by the division of language. Flemish is the language spoken in Flanders, to the north, whilst the inhabitants of Wallonia in the south, speak French, and a German-speaking minority in the east. This diversity is reflected across the French, Flemish, or German-speaking Bars, located in major towns and cities. Many lawyers are bilingual, or trilingual.
The issue of language is important in the Kingdom, as some firms lean naturally towards the Francophone, or Flemish communities, and is also politically significant, as each language community has its own regional government, with a separate city region for (mostly French-speaking) Brussels, and a trilingual Federal state.
The caretaker Belgian government and its Prime Minister, Yves Leterme, resigned in April 2010. Subsequent elections in June left, once again, a parliament with no overall control. Brussels is also the home of the European Commission which saw a change of Commissioners in DG Competition and DG Trade, namely, Spain’s Joaquin Almunia and Belgium’s Karel De Gucht.
2010 marked a largely moribund year for the Belgian economy, with few major M&A transactions. With financial institutions recovering from a traumatic 2009, extensive restructuring for major banks such as Dexia, KBC, and BNP Paribas Fortis included state aid mandated divestitures. With rising public debt and unemployment, and a flat property market, restructuring has been the main theme. Some private equity transactions are emerging, even if IPOs are uncertain, and markets remain volatile. Litigation, however, is on the increase, as is employment law advice.
Merger clearance work remained down, although state aid-related instructions have increased, whilst cartel investigations and cartel settlements remained busy; private actions for damages are also increasing, as is sectoral inquiry work, and general EU law advice – including compliance counselling, a need heightened after the ECJ’s judgement in Akzo Nobel.
2010 has seen further lateral moves, particularly amongst competition law firms, including Simon Baxter’s move to Skadden, Arps, Slate, Meagher & Flom LLP. Squire, Sanders & Dempsey (UK) LLP also saw the arrival of trade lawyer Robert MacLean from Crowell & Moring. Elsewhere, Lydian was joined by Patrick della Faille; Field Fisher Waterhouse welcomed Thierry Van Innis from Allen & Overy LLP. Howrey LLP saw the departure of four IP partners to Hoyng Monegier LLP and Patricia Cappuyns to Olswang. On the competition side, it saw the exit of Lars Kjølbye and Peter Camesasca to Covington & Burling LLP, and Martina Meier to McDermott Will & Emery/Stanbrook LLP.