Belgian PM Set to Resign After Budget Talks Collapse

Belgian Prime Minister Bart De Wever was expected to submit his resignation on Monday after overnight coalition negotiations ended without a deal on spending cuts, according to Belgian media.

De Wever arrived at the Royal Palace in Brussels in the morning for a meeting with King Philippe. He did not speak to reporters on his way in, and his office did not immediately respond to requests for comment.

His five-party coalition has been unable, once again, to agree on next year’s budget. The government has spent months in dispute over roughly €10 billion ($11.2 billion) in cuts and tax rises, which De Wever argues are necessary to keep public finances under control.

The political crisis comes at a sensitive time for financial markets, where borrowing costs have climbed sharply for countries seen as having shaky public finances, including Belgium and France.

Despite the expectation of a resignation, the king is not thought likely to accept it straight away. Newspaper De Tijd, citing sources, reported that Philippe could instead send De Wever back to the negotiating table for one final attempt at reaching a compromise.

via Reuters