Belgium has been plunged into a fresh political crisis after Prime Minister Bart De Wever offered his resignation following the collapse of negotiations over the country’s 2027 budget.
De Wever tendered his resignation to King Philippe on Monday, November 2, after a 90-minute meeting at the Royal Palace, following months of unsuccessful negotiations among coalition partners over measures to stabilise public finances.
The king is considering the prime minister’s offer and is expected to consult leaders of the coalition parties from Tuesday as efforts begin to resolve the political impasse.
In a statement, the Royal Palace warned that Belgium could not afford a prolonged political crisis amid growing geopolitical uncertainty and serious economic challenges.
“In light of the large geopolitical uncertainty and severe economic challenges, the country can’t afford a long political crisis,” the palace said.
The political dispute centres on approximately €10 billion in proposed budget cuts and tax increases that De Wever says are necessary to stabilise Belgium’s public finances.
The prime minister’s Flemish nationalist party, New Flemish Alliance (N-VA), and liberal coalition partner MR have pushed for deeper spending reductions, including cuts affecting healthcare.
However, their socialist and centrist coalition partners have resisted aspects of the proposals, calling instead for higher taxes on wealthy individuals to generate additional revenue.
Deputy Prime Minister Maxime Prevot, of the francophone centrist party Les Engagés, renewed calls for greater contributions from high-income individuals following De Wever’s meeting with the king.
A contribution from those with substantial financial means is legitimate,” Prevot said in a post on X.
He added that sharing the financial burden between wealthier citizens and other members of society was important for the country’s future.
In an interview with broadcaster VRT, Prevot put the possibility of fresh elections at “50/50”, while urging coalition parties to return to negotiations.
Opposition parties, trade unions and business associations have also called on the government parties to resume talks and prevent the crisis from escalating.
Belgium’s political uncertainty comes as the country grapples with mounting public debt, budget pressures and increasing borrowing costs.
The European Commission forecast in May that Belgium’s public debt-to-gross domestic product ratio would reach 110.5 per cent in 2026, among the highest in the eurozone, behind Greece, Italy and France.
The commission also projected a general government deficit of 5.2 per cent of GDP.
De Wever has repeatedly warned about what he described as an “interest snowball”, arguing that without spending reforms, the government risks borrowing simply to service existing debt.
According to the report, Belgium’s 10-year benchmark government bond yield stood at 4.39 per cent on Monday afternoon, compared with 4.90 per cent for France and 3.29 per cent for Germany.
Belgian 10-year yields had been around 3.48 per cent four months earlier, reflecting the increase in borrowing costs over the period.
The developments come amid broader financial pressures across Europe, where governments are struggling to balance fiscal discipline with demands for increased public spending on essential services, including education.
Failure to reach a budget agreement could force Belgium to operate under provisional spending arrangements next year.
Under the rules outlined in the report, the government would be allowed to spend only one-twelfth of the previous year’s budget each month.
Such arrangements could complicate the implementation of new spending priorities and fiscal measures as the country confronts its economic challenges.
The dispute also reflects wider tensions over how European governments should distribute the burden of fiscal adjustments between spending reductions and higher taxes
If the monarch accepts the prime minister’s resignation, he could ask political parties to explore the formation of another coalition or pave the way for fresh elections.
The outcome of the consultations could determine whether Belgium’s existing coalition can restore its working relationship or whether the country faces a broader political restructuring.
For now, the immediate challenge remains finding common ground on the budget, with coalition partners under pressure to agree on a financial plan and prevent prolonged uncertainty.
