Belgian PM to quit as budget talks collapse

Belgian Prime Minister Bart De Wever has tendered his resignation to King Philippe following the collapse of budget talks, though he will remain in his position as head of government, announced the Belgian palace on Monday. The king has suspended his decision on the matter and will engage in discussions with the coalition government's party leaders from Tuesday, with a follow-up meeting with De Wever scheduled for Friday.

The king lamented the failure to reach an agreement on a viable budget to address the country's present challenges, emphasizing that Belgium cannot afford a prolonged political crisis amid significant geopolitical uncertainties and economic hardships. "Against a backdrop of considerable geopolitical uncertainty and significant economic challenges, the country cannot afford a prolonged political crisis," the palace's press release stated.

De Wever, a core member of the government, was unable to reach an agreement on the 2027 federal budget or the 10 billion euros ($11.2 billion) savings package mandated by 2029 to lower Belgium's deficit and public debt. Late-night negotiations did not manage to reconcile the disparities between the right-wing and center-left factions of the coalition.

Right-wing factions were displeased with tax proposals, while left-wing factions demanded a larger contribution from those with the most resources, according to Belga news agency.

Belgium, among the most indebted nations in the European Union, must save billions of euros to adhere to EU deficit and debt rules. Concurrently, the country is facing mounting pressure to boost its defense spending in line with NATO plans in the upcoming years. Public discontent and protests from trade unions against impending austerity measures have also contributed to the government's predicament.

In October, approximately 40,000 individuals participated in a trade union demonstration in Brussels opposing planned budget cuts, and two days later, a separate march saw up to 60,000 protesters urge the government not to abandon its climate targets.