Belgian PM to determine govt future in meeting with king

Belgian Prime Minister Bart De Wever will meet with King Philippe on Friday to decide whether he will resign or continue in office following the collapse of budget negotiations. De Wever tendered his resignation during a 90-minute meeting with the king on Monday morning. The monarch will review De Wever's resignation offer, but will also consult with the leaders of the coalition partners from Tuesday to Thursday before meeting with De Wever again on Friday morning.

During a parliamentary session on Thursday, De Wever expressed his inclination to stay in office rather than resign. He emphasized his desire to secure a budget that would bring financial stability for the coming years, stating that he sought to rid the nation of past mismanagement and usher in an era of responsibility. However, he did not rule out the possibility of initiating new negotiations within the current coalition.

The Belgian government faces a €10 billion challenge to stabilize its finances. Some parties advocate for budget cuts, while others argue that tax increases are necessary. The crisis unfolds as financial markets exhibit heightened stress, with interest rates surging on government bonds of Belgium, France, and other European countries deemed to have weak government finances.

The European Commission projects that Belgium's debt-to-gross domestic product ratio would reach 110.5% in 2022, trailing only Greece, Italy, and France among eurozone countries. Belgium's 5.2% projected general government deficit of GDP also mirrors the deficits of Greece and Italy.