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Belgian government in crisis after budget talks collapse
Reuters • • world
Key Points:
- Belgium's King Philippe is attempting to resolve a political crisis after Prime Minister Bart De Wever offered his resignation following failed budget talks among coalition parties.
- The deadlock centers on disagreements over €10 billion in budget cuts and tax increases, with De Wever's parties pushing for deeper spending cuts and coalition partners demanding higher wealth taxes.
- Deputy Prime Minister Maxime Prevot indicated a "50/50" chance of new elections but urged coalition parties to resume negotiations to avoid a budget crisis.
- Belgium faces rising national debt and financial market pressures, with government bond yields increasing amid concerns over fiscal stability and the risk of borrowing to service existing debt.
- King Philippe will continue consultations with coalition leaders and meet De Wever again on Friday, with potential outcomes including acceptance of the resignation, formation of a new coalition, or fresh elections.
