French Prime Minister Michel Barnier resigned his government before President Emmanuel Macron today after losing a vote of no confidence in parliament last night. With a ballooning budget deficit and no government, crisis-ridden France is a warning to Belgium's mandate-holder Bart de Wever if the country's government negotiations fail, Belgian news agency Belga noted in an analysis.
France's government has been toppled after its parliament passed a vote of no confidence. Barnier's government had planned to push through a budget that included a 60 billion euro deficit cut without garnering support in parliament. No one knows where the country will go from here. France urgently needs to reduce its budget deficit, which is one of the highest in Europe. But with new parliamentary elections not due until July and no group large enough to form a majority, the French government is at an impasse, notes Belga.
France's budget crisis is a warning for Belgium's mandate-holder and New Flemish Alliance leader Bart de Wever. He had hoped to quickly form a government with four other formations - "Forward", Christian Democrats and Flemish, Reform Movement and Democratic Humanist Centre - to tackle Belgium's budget deficit, but more than half a year after the election the country has yet to form a coalition.
As in France, Belgium's parties are also divided over how to deal with the Belgian budget. The New Flemish Alliance wants to implement sweeping austerity measures, while "Forward&" wants to increase spending power and investment in healthcare.
Belgium has already missed the EU deadline for budget proposals. The European Commission gave the country until the end of the year, but even that deadline will be hard to meet as budget negotiations often take weeks, if not months.
The question is what the European Commission will do with countries that miss the deadline. The Commission is threatening sanctions, such as budget surveillance and fines, for countries that fail to reduce their budget deficits. Imposing sanctions on France would boost anti-EU sentiment, but failing to do so would undermine the Commission's credibility.
In any case, Belgian De Wever must ensure that he presents a budget proposal that is acceptable to all five parties, as this is the only workable majority. Otherwise, Belgium risks falling into a crisis like France.