Belgium is facing a new political crisis after the five parties in the governing coalition failed to reach an agreement on the country’s multi-year federal budget. Prime Minister Bart De Wever is expected to visit the Royal Palace to tender his resignation to King Philippe.
According to the French-language Belgian newspaper Le Soir, negotiations held late Sunday ended without an agreement, despite lengthy discussions and new proposals put forward by the prime minister.
At the center of the dispute is the need to find approximately €10 billion by 2029 to reduce the budget deficit and ensure the sustainability of Belgium’s public finances.
The meeting between De Wever and King Philippe could prove decisive for the government’s future. The monarch may accept the prime minister’s resignation or ask him to continue negotiations in an effort to secure a compromise among coalition partners.
Despite the deadlock, some government officials are still hoping for a last-minute agreement. One deputy prime minister said he hoped De Wever’s visit to the Royal Palace would serve as a wake-up call for coalition partners and push them toward a compromise.
The dispute involves the five parties forming the so-called Arizona coalition: N-VA, MR, Les Engagés, CD&V and Vooruit.
The main disagreement concerns how the financial burden should be distributed. The liberal MR party opposes increasing value-added tax (VAT) and is calling for deeper cuts in public spending.
Meanwhile, the socialist Vooruit party and centrist Les Engagés are advocating higher taxes on high incomes and substantial wealth. Proposals to tax capital gains and stock market transactions have also been discussed.
According to Le Soir, some coalition partners have called for the combined savings and additional revenue measures to be limited to €8 billion, rather than the €10 billion sought by De Wever.
The prime minister has also warned that Belgium risks a downgrade of its credit rating if it fails to improve its public finances.
Belgium faces renewed political uncertainty
Despite the collapse of the negotiations, the government’s immediate fall is not yet certain. Much will depend on King Philippe’s response and whether the five coalition parties are willing to make concessions in the coming hours.
If no compromise is reached, Belgium could enter another period of political uncertainty, potentially complicating efforts to manage its public finances.
