Belgian Prime Minister Bart De Wever will remain in office after King Philippe refused to accept his resignation. De Wever resigned on 2 November over the failure of talks between the five parties in the governing coalition on the 2027 budget.
Following a meeting with the prime minister, the Royal Palace said that the leaders of the coalition parties had committed to making the necessary concessions and reaching an agreement on a budget framework for the next three years.
“All of them confirmed their determination to reach an agreement on a stable budget framework for the next three years,” the palace said.King Philippe stressed the need to find a balance between preserving social cohesion and stimulating economic growth. According to the statement, each of the party leaders had committed to upholding the spirit of compromise and showing responsibility.
The dispute is over €10 billion in savings
The political crisis is linked to the 2027 budget and a package of measures through which the government aims to achieve savings of around €10 billion by 2029. The talks reached an impasse last weekend due to disagreements between the right-wing and centre-left parties over tax reforms.
De Wever heads a coalition bringing together five parties and a broad range of political positions. After the prime minister resigned, the king held consultations with the leaders of the governing parties in search of a way out of the deadlock. The Royal Palace confirmed that the talks must resume immediately.
De Wever is due to brief King Philippe on the progress made on 16 November. By then, the coalition partners must resolve their differences over the size and distribution of the savings, tax changes and social spending.
Government under pressure over deficit and protests
Belgium is facing the need to curb its budget deficit and public debt in order to comply with the European Union’s fiscal rules. At the same time, the country must increase its defence spending in line with NATO plans.
The planned measures have triggered public and trade union opposition. Around 40,000 people took part in a trade union demonstration in Brussels in October against budget cuts. Two days later, a separate march drew up to 60,000 people, who called on the government not to abandon its climate goals.
Sources: news.bg, apnews.com, ca.marketscreener.com