De Wever Government Resigns in Belgium Over Budget Disputes

Belgian Prime Minister Bart De Wever submitted his government's resignation to King Philippe on Monday, following the failure of negotiations between parties participating in the governing coalition to reach an agreement on the public budget.

The resignation came after intensive negotiations that continued until the early hours of Monday morning, without reaching an agreement on a plan to save approximately 10 billion euros by 2029, amid disputes over the distribution of the burden of reducing the fiscal deficit.

The main points of disagreement focus on the extent of cuts in healthcare spending and the degree of tax increases for the ultra-wealthy. The socialist party "Vooruit" demands more equitable measures protecting citizens, the health sector, and retirees, while the "Reformist Movement" and "New Flemish Alliance" oppose expanding wealth taxes.

De Wever had previously warned against starting next year with a provisional budget, given the persistent fiscal deficit and rising public debt, which placed the governing coalition under increasing pressure to reach a settlement.

The government's resignation does not necessarily mean heading to early elections, as the King can keep the resignation pending and invite the parties to resume negotiations in search of an agreement that ends the political and financial crisis.