Budget crisis shakes Belgium... Prime Minister resigns, King delays ruling

Belgian Prime Minister Bart De Wever resigned yesterday amid stalled budget negotiations, but King Philippe postponed a decision on the resignation until after a new meeting between them scheduled for Friday.

The conservative politician has been engaged in lengthy talks to reach an agreement on next year’s federal budget, as the government seeks to achieve savings of 10 billion euros ($11.6 billion) by 2029 to reduce the high deficit.

The latest round of talks collapsed hours before De Wever submitted his resignation. A statement from the royal palace said, “The King has postponed his decision and will hold consultations with the various leaders of the ruling coalition parties,” adding that Philippe would meet De Wever again on Friday.

The palace warned that “Belgium cannot afford a prolonged political crisis,” noting that the King expressed “regret at the failure to reach an agreement that would provide the country with a credible budget capable of addressing current challenges.”

The King called on “everyone to act with a sense of responsibility” and urged those involved to “give priority to the public interest and a spirit of compromise,” according to the statement.

De Wever has led a five-party center-right coalition since February 2025. Belgium faced a similar budget crisis a year ago, when De Wever nearly submitted his resignation to the King.

The government is seeking to save billions of euros and generate new revenue to reduce the budget deficit, which exceeds 5 percent of GDP. Its plan focuses primarily on cutting public spending, including healthcare expenditures, but also includes an increase in the value-added tax (VAT), which has drawn strong opposition from one of the coalition partners.

The French-speaking liberal party, Mouvement Réformateur (MR), opposes any additional tax hikes, arguing they would fuel inflation.

These negotiations are taking place amid pressure from trade unions, which have been staging protests for months against austerity measures, drawing tens of thousands of participants.