Amid Budget Dispute in 'Debt-Ridden' Belgium, Prime Minister Offers to Resign

Five-party coalition clashes over fiscal consolidation measures
King defers decision on resignation; to meet prime minister again on the 6th
Belgium's national debt at around 110% of GDP

The Belgian prime minister offered to resign after disagreements within the coalition government over next year’s budget. With national debt exceeding 110% of gross domestic product (GDP), the coalition failed to reach agreement on tax increases and spending cuts to reduce the budget deficit, triggering a political crisis.

Belgian Prime Minister Bart De Wever speaks during a plenary session of the Federal Parliament in Brussels on the 8th of last month (local time). EPA-Yonhap News

According to the Associated Press and Euronews, among other outlets, Prime Minister Bart De Wever met King Philippe on the morning of November 2 and tendered his resignation. The move followed the collapse of budget talks among cabinet ministers, which had continued from the previous night. King Philippe deferred a decision on whether to accept the resignation and decided to hold further consultations with the coalition parties.

In a statement, the royal palace said, "The King regrets that no credible budget agreement has been reached to address the challenges facing the country." Saying Belgium could not withstand a prolonged political crisis, the King urged each party to put the national interest and compromise first. He is scheduled to consult with the leaders of the coalition parties starting November 3 and meet De Wever again on November 6.

At the heart of the dispute is a 10-billion-euro (approximately 15 trillion won) fiscal consolidation plan. The Belgian government must cut spending to comply with European Union (EU) fiscal rules, but coalition partners remain divided over how to raise the necessary funds.

The conservative New Flemish Alliance (N-VA), led by De Wever, and the liberal Reformist Movement (MR) are calling for government spending cuts. In contrast, Vooruit, a socialist party, the Christian Democratic and Flemish party (CD&V), and the centrist Les Engagés argue that 1 billion to 1.5 billion euros should be raised by increasing taxes on high-income earners.

After the negotiations collapsed, Belgian Foreign Minister Maxime Prévot told local media, "There were too many contentious issues," adding, "It would take forever to list them all." Deputy Prime Minister David Clarinval blamed Vooruit for the breakdown in talks, saying it had refused to back down from its call for tax increases.

Belgium's budget deficit last year reached 5% of GDP, far exceeding the EU's 3% limit. National debt has also topped 735 billion euros, exceeding 110% of GDP. This is far above the EU's national debt limit of 60% of GDP. The fiscal burden has grown amid the COVID-19 pandemic, the energy crisis, increased defense spending, and rising government bond yields.

The Belgian government must reach an agreement on the 2027 budget by the end of the year. Foreign media reported that if no agreement is reached, the country will have to operate under a provisional budget system starting next year, spending one-twelfth of the previous year's budget each month.

This content was produced with the assistance of AI translation services.