Belgium: Prime Minister Tenders Resignation to the King Amid Budget Deadlock

Interparty negotiations lasted late into the night but failed to yield results. Belgian Prime Minister Bart De Wever traveled to the Royal Palace on Monday, November 2, to submit his resignation to King Philippe, following the government coalition's inability to reach an agreement on the 2027 budget, despite multiple restricted cabinet meetings (kern), the last of which took place on Sunday evening. The King, however, chose not to make an immediate decision, the Royal Palace said in a statement, urging Bart De Wever to seek a compromise on the budget.

The King will review Bart De Wever's budget proposal and meet with him again on Friday, November 6, while also holding consultations with the leaders of the other coalition parties starting Tuesday, the palace stated.

Should the King ultimately accept the Prime Minister's resignation, he could ask other parties to form a coalition or call early elections. "Given the profound geopolitical uncertainty and severe economic headwinds, the country cannot afford a prolonged political crisis," the palace wrote in the statement.

Disagreement Over Measures to Rein in Public Finances

For months, the government has argued for budget cuts and tax increases totaling 10 billion euros, which Bart De Wever—in office since February 2025—considers necessary to bring state finances under control.

Within the five-party center-right governing coalition, the Flemish nationalist New Flemish Alliance (N-VA) of Bart De Wever and the French-speaking liberal Reformist Movement (MR) are primarily seeking reductions in healthcare spending. In contrast, two other coalition partners—the Flemish socialists of Vooruit and the French-speaking centrist party Les Engagés—are demanding a larger contribution from high earners toward fiscal consolidation efforts.

The Christian Democratic and Flemish party (CD&V), the Flemish counterpart to Les Engagés, completes the coalition. The alliance is nicknamed "Arizona" because the four colors of its constituent parties (yellow, orange, red, and blue) resemble the flag of the US state.

Rising Budget Deficit and Debt Ratio

Without an agreement, the government would be forced to operate under a restricted budget next year, which would limit its spending to one-twelfth of this year's budget per month. "The situation is grave. The fiscal stakes facing our country are too significant to surrender to an impasse that resolves nothing. The budgetary challenge will not miraculously disappear if the government collapses. On the contrary, the situation will only worsen," Les Engagés said in a statement.

According to figures from the National Bank of Belgium (NBB), the budget deficit reached 5.2% of GDP in 2025, up from 4.4% in 2024, while the debt ratio continued to climb to 108.1% of GDP in 2025, up from 104.0% in 2024. For 2026, the NBB currently forecasts a budget deficit of 5.3% and a debt ratio of 111.3%, based on projections released in June.

The current Belgian political crisis—which is not unprecedented, as a similar deadlock occurred in 2025 resulting in a resignation that King Philippe also turned down—coincides with heightened tension in financial markets, where bond yields have risen sharply on sovereign debt from Belgium, France, and other European countries perceived as having fragile public finances.

So far, the head of government has rejected the prospect of an emergency budget modeled on the previous fiscal year, known as the "provisional twelfths" mechanism permitted under Belgian law.

Despite the government crisis, parliamentary work will proceed as normal this week, Chamber of Representatives President Peter De Roover announced on Monday. As noted by La Libre, however, if the impasse continues, few government-sponsored bills are expected to reach the floor of the Chamber. By contrast, bills that have already begun their legislative journey may still continue through the review process.