Belgian PM De Wever Resigns Over Budget Impasse; King Delays Decision

Belgian Prime Minister Bart De Wever submitted his resignation to King Philippe on Monday, November 2, after budget negotiations within his five-party coalition collapsed. The resignation follows failed overnight talks on the country's 2027 budget. King Philippe announced he would withhold a decision on whether to accept the resignation, beginning consultations with coalition party leaders on Tuesday and meeting with De Wever again on Friday.

The core dispute centers on how to close a €10 billion (approximately $11.2 billion USD) annual budget shortfall. De Wever's conservative N-VA party and the liberal MR favor greater spending restraint, including cuts to healthcare, while socialist and centrist coalition partners—Vooruit, CD&V, and Les Engagés—push for a larger share of the adjustment to come from taxes on wealth and higher incomes. Foreign Minister Maxime Prévot acknowledged "too many sticking points" in the talks.

Belgium faces acute fiscal pressure. The country's debt stood at 735 billion euros (110% of GDP) at year-end 2025, and its budget deficit reached 5.2 percent of GDP in 2025—both well above EU reference values of 60 percent and 3 percent respectively. The European Commission forecasts debt to rise further to 110% of GDP in 2026. De Wever has sought to avoid financing deficits through additional borrowing, citing the need to manage interest rate pressures on government bonds.

King Philippe emphasized in his statement that Belgium "cannot afford a prolonged political crisis" and urged all parties to prioritize "the general interest and a willingness to compromise." Historically, Belgian monarchs reject prime ministers' initial resignation requests and instruct them to resume negotiations, though parties may opt for early elections if politically advantageous. De Wever took office in February 2025 after 234 days of coalition negotiations. This is the second consecutive year the government has faced budget negotiations requiring €10 billion in adjustments; in November 2025, De Wever sought and received a 50-day extension rather than resigning.

The government must finalize a credible budget by December 31 to meet EU requirements. The political crisis occurs against a backdrop of student protests and union-led strikes in Belgium, including multiple "national action days."