Belgium forms new federal government

After nearly 30 hours of non-stop negotiations, formateurs Kris Peeters (CD&V) and Charles Michel (MR) announced an agreement on the formation of new Belgian federal government yesterday evening.

The so-called Swedish coalition will consist of nationalists N-VA, Christian-democrats CD&V and liberals Open VLD on the Flemish side and on the French-speaking side only liberals MR. At only 38, Michel will be the youngest prime minister to ever lead the country.

“This will be a government of recovery,” said Michel, referring to the delicate issue of balancing the budget. The coalition partners agreed on cuts worth nearly €8 billion.

In order to balance the budget by 2018, some €3 billion in new taxes will be introduced. About the same amount will be given to employees and companies as a tax break. “This is a tax shift. Every euro we take, we give back,” said N-VA party president Bart De Wever.

The new coalition will raise the retirement age by two years, to 67. The automatic index adaption, which links wages to the cost of living, will be skipped in 2015. Workers will, however, receive a tax break of €250. The coalition also agreed on a solution for the Arco savers/shareholders, who will get 40% of their money back.

The new government will have 13 ministers, six from the French-speaking side and seven from the Dutch-speaking side. Negotiations continue today to decide on the division of the portfolios. Some names are already known: N-VA’s Jan Jambon will become the new minister for the interior; Open VLD’s Maggie De Block becomes public health minister.

CD&V gets the work portfolio, which is expected to go to Peeters, Flanders’ former minister-president. Didier Reynders (MR) will continue as minister of foreign affairs.

On Thursday and Friday the coalition parties will hold a congresses to give their consent to the agreement. The new government is expected to be sworn in by King Filip on Saturday.

Photo: Formateurs Kris Peeters (left) and Charles Michel this morning outside parliament

©Benoit Doppagne/BELGA