Belgian coalition talks collapse over budget dispute

Belgium’s coalition talks collapsed Thursday after Flemish conservative Bart De Wever, the chief negotiator, resigned amid a dispute over a proposed capital gains tax. De Wever’s resignation, accepted by King Philippe, leaves Belgium in political limbo just two months after the elections. The five-party coalition’s attempt to form a center-right government was derailed by divisions over budget and tax issues, particularly the capital gains tax proposed to address Belgium’s significant deficit.

De Wever, who is also the mayor of Antwerp, had been leading negotiations between the New Flemish Alliance, the Reformist Movement, Forward, the Flemish Christian democrats, and the Walloon Committed Ones party. The tax proposal was intended to win over the center-left Forward party, but it faced staunch opposition from the center-right Reformist Movement, leading to the breakdown of talks. De Wever’s resignation is a significant setback for his ambition to become Belgium’s first Flemish separatist prime minister.

King Philippe will now take charge of the process, consulting with party leaders to explore possible paths forward. Belgium faces pressing deadlines, including the nomination of an EU commissioner by the end of August and the submission of a deficit reduction plan to the European Commission by 20 September. The country’s political future remains uncertain as efforts to form a stable government continue.

(Sources: Agence France-Presse; Pieter Haeck, POLITICO)