Belgian king gives prime minister until November 16 to resolve budget crisis
Belgium's King Philippe has given Prime Minister Bart De Wever until November 16 to negotiate a budget agreement and avert the collapse of his five-party coalition, the Royal Palace announced on November 6.
De Wever offered to resign on November 2 after months of negotiations failed to produce an agreement on €10 billion in spending cuts and tax increases that he says are needed to stabilize Belgium's public finances.
Following consultations with the king, all five coalition parties expressed a willingness to compromise, according to the Royal Palace. Budget talks will resume immediately, and De Wever is expected to report back to the king on November 16.
The prime minister did not speak to reporters before or after his meeting with the monarch.
The political uncertainty comes amid growing concerns about Belgium's public finances. The European Commission projected in May that the country's public debt would reach 110.5% of GDP in 2026, with a budget deficit of 5.2%.
Belgian government borrowing costs have also risen. The yield on the country's benchmark 10-year bonds stood at 4.25% on November 6, compared with 3.50% four months earlier, Reuters reported.
The crisis also comes as Belgium plays a central role in European discussions over using frozen Russian assets to support Ukraine.
De Wever has opposed proposals to use the Russian central bank assets held at Belgium-based financial clearinghouse Euroclear to finance assistance to Kyiv, citing concerns about legal and financial risks.
The budget dispute itself concerns domestic fiscal policy, and no direct link has been established between the coalition crisis and the frozen-assets negotiations.