The Belgian prime minister, Bart De Wever, presented his resignation this Monday to King Philippe after his Government failed in the attempt to reach a budget agreement during the night. The differences between the five parties of the Arizona coalition have prevented closing the 2027 accounts and agreeing on the 10 billion euro adjustment that Belgium needs to reduce its public deficit by 2029.
The decision comes after a new round of negotiations between the main officials of the Executive that ended without progress. The disagreement is concentrated in the distribution of the fiscal effort: while the Flemish nationalists of N-VA, led by De Wever, and the French-speaking liberals of the MR defend prioritizing spending cuts, the socialists of Vooruit and the centrists of CD&V and Les Engagés call for a greater contribution from the highest incomes.
The latest meeting of the restricted core of the Council of Ministers confirmed that the positions remained too far apart to close a compromise. The Foreign Minister, Maxime Prévot, acknowledged that "too many blocking points" persisted and that listing them would take an eternity.
Taxes and cuts, the origin of the blockage
Among the measures that were on the table were a one-point increase in VAT, vetoed by the MR, cuts in health care, rejected by Vooruit, and changes in the mechanisms for indexing wages and social benefits. None of the alternatives managed to gather the support of the five partners.
During the talks, reducing the adjustment target from 10 to 8 billion euros was also raised. De Wever rejected that possibility given the risk that a smaller fiscal consolidation would damage market confidence and cause a downgrade of Belgium's credit rating.
The budgetary urgency responds to the deterioration of public finances. Belgium closed the last fiscal year with a deficit of 5% of GDP and debt above 110%, compared with the limits of 3% and 60% established by the European fiscal rules. The rising cost of financing adds pressure on public accounts that need a path of consolidation.
The king will decide the future of the Executive
The resignation is now in the hands of Philippe of Belgium, who can accept it, reject it, or keep it in suspense to explore a way out of the crisis. The resignation does not in itself mean the calling of elections or the immediate سقوط of the Executive.
The Arizona coalition, made up of N-VA, MR, Vooruit, CD&V and Les Engagés, came to power after 234 days of negotiations. It is not the first time that De Wever has gone to the Royal Palace over a budgetary blockage: in November 2025 he requested from the monarch an extension of 50 days to close an agreement on the fiscal adjustment.
The failure of the talks comes, moreover, in a context of social opposition to the austerity measures. Belgium has recorded several days of mobilization against the cuts planned in public services and the unions have called a new national strike for next November 23.