New deadline for Belgian prime minister to break deadlock in budget negotiations

Following King Philippe’s refusal of the prime minister resignation on Friday, it’s back to the negotiation table for Belgium’s coalition government.

Bart De Wever (N-VA) now has until 16 November to break the deadlock over the €10 billion budget shortfall. He is launching the process with a series a of bilateral talks with each of the deputy prime ministers.

The current crisis arose after the prime minster tendered his resignation to King Philippe on 2 November after the collapse of his government’s budget negotiations. The monarch then withheld a decision until last Friday after conducting individual meetings with each of the coalition party leaders.

In a statement from the Palace, King Philippe emphasised the importance of striking a balance between maintaining social cohesion and promoting economic growth. Each party leader had pledged to prioritise compromise and a sense of responsibility and formally committed to making concessions to reach an agreement, it added.

So if De Wever now has a further reprieve in reaching an agreement, pressure is growing to find a solution. When addressing the chamber following his meeting with the King, he highlighted the need to address the problems. “This can only be done by making difficult choices now, coming to terms with the mismanagement of the past and entering an era of responsibility. I want and can only be the Prime Minister of a government that puts this forward.”

This failure to agree a budget is set against the country’s worrying public finances. Public debt has now reached over €719 billion, equivalent to 110.2% of its gross domestic product (GDP). Meanwhile, the deficit is projected to be around €33 billion by 2026, reports RTBF.

For MR president Georges-Louis Bouchez, calling an election would be “completely irresponsible, given Belgium’s budgetary situation.” He noted, “There is €348 billion in public spending in this country; the idea that we cannot find 10 billion out of that 348 billion is simply not reasonable.”

The liberal party leader pointed out that all parties must be prepared to make concessions. “However, we must also avoid reaching a poor compromise. What stands out to me most in the Palace’s statement is the emphasis on the need to stimulate economic growth — a point the MR has frequently raised, often while standing alone. I now see that this has become a core part of the government’s mandate."

Deputy prime minister David Clarinval was satisfied that the message regarding “the need to stimulate economic growth had been heard.” He said he stood ready “to begin working on a project as soon as possible.”

For his part, Maxime Prévot of Les Engagés expressed satisfaction that the King had received assurances from each of the majority party leaders of their commitment to reaching an outcome as quickly as possible. "I am in the starting blocks, ready to resume negotiation meetings the moment the prime minister calls us together.”

Photo: Bart De Wever addressing the Belgian Chamber