Belgium’s King Philippe has rejected Prime Minister Bart De Wever’s resignation and directed him to resume budget negotiations in an effort to resolve the country’s political crisis.
The decision followed a meeting between the monarch and De Wever on Friday, after months of disagreements among coalition partners over the country’s finances.
De Wever offered his resignation on Monday after prolonged negotiations failed to produce an agreement on Belgium’s budget.
The government is seeking €10 billion through spending cuts and tax increases to stabilise public finances, but coalition parties remain divided over how to achieve the target.
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The Royal Palace said all five coalition parties had expressed their willingness to compromise and reaffirmed their commitment to reaching an agreement on a sound budgetary path for the next three years.
Following consultations with the coalition leaders, King Philippe tasked De Wever with launching a fresh round of negotiations and reporting back to him on November 16.
The prime minister had earlier indicated that he was more inclined to remain in office, expressing hope that an agreement could be reached to ensure Belgium’s financial stability.
The political impasse comes amid growing pressure on Belgian government bonds, as investors increasingly scrutinise the finances of heavily indebted European countries.
Belgium’s debt-to-GDP ratio is projected to reach 110.5 per cent this year, while its budget deficit is forecast at 5.2 per cent of gross domestic product, according to the European Commission.
Belgian 10-year government bond yields rose to 4.25 per cent on Friday, compared with 3.50 per cent four months earlier.
Reuters
