Belgian Prime Minister Bart de Wever is expected to go to King Philippe and offer his resignation after federal budget talks failed. The political crisis came after the narrowly-aligned government failed to reach a compromise after talks that lasted until around 1:00 a.m., Deputy Prime Minister David Clarenval said, and other government sources confirmed the news.
The resignation is still an expected step, not a formal act. King Philippe must decide whether to accept it. The cabinet will continue to function until the verdict is delivered, but the failure calls into question the five-party coalition's ability to make key decisions.
The dispute is over taxes and the size of the savings
De Wever's government is seeking a budget consolidation of around 10 billion euros by 2029. The aim is to bring public finances closer to European spending rules while limiting pressure from financial markets and rising debt service costs. However, negotiations on the 2027 budget have run into differences between the partners over who should bear the brunt.
The socialist Vooruit and Les Engagés are pushing for people with the highest incomes and assets to contribute more through tax measures. The liberal Reform Movement opposes higher taxes and is pushing for more severe spending cuts. There is also a dispute over limiting the growth of health care funds.
“I said there are too many taxes“, said Clarenval, who spoke of more than 3 billion euros in new tax revenues in the package under discussion. Other party sources dispute this estimate and point out that the budget tables included around 2 billion euros in additional revenues, with an overall target of 10 billion euros by 2029.
Is Belgium under threat of a provisional budget
The failure of the negotiations reduces the chances of the country starting 2027 with a regularly adopted budget. In the absence of an agreement, the government can use the system of provisional twelfths, in which up to one twelfth of the previous year's budget is spent each month.
De Wever has already stated that he does not accept this option. The coalition parties must decide whether to renew negotiations and work out a compromise, or to enter a new phase of political uncertainty. After the Prime Minister's visit to King Philippe, it will be clear whether the resignation will be accepted and what consultations will follow.
Sources: bruzz.be, brusselstimes.com, belgium-now.com