Belgian Prime Minister rejects resignation... Away from the crisis of government collapse
Amid the threat of collapse of the coalition government, a re-reporting of the budget plan is ordered by the 16th of next month.
Quick Look
- King Philippe of Belgium rejected the resignation of Prime Minister Bart de Beverard, who had resigned due to a conflict over the budget, and ordered renegotiations with coalition partners.
- Belgium is under fiscal austerity pressure due to high national debt and fiscal deficit.
AI-generated summary
Why It Matters
Belgium is classified as a financially weak country in Europe with a national debt-to-GDP ratio of 110.2%. The coalition government is pursuing an austerity package worth 10 billion euros by 2029.
The King rejected the resignation of Belgian Prime Minister Bart Derbever after a dispute over the budget. The coalition government, which was on the verge of collapse, is expected to resume budget negotiations following the king's order.
According to the AFP news agency, King Philippe of Belgium, who met with Prime Minister DeWever on the 6th (local time), did not accept the resignation, but ordered the government to discuss the budget again with the coalition partners and report by the 16th of next month.
The royal family said that all five parties participating in the coalition expressed their intention to compromise on the budget when they met with the king this week.
Prime Minister DeVever submitted his resignation to the King on the 2nd after the austerity package, which would reduce government spending by about 10 billion euros (about 15.1 trillion won) by 2029, reached a deadlock due to differences of opinion within the coalition government.
The right-wing nationalist party New Flemish Alliance (N-VA), led by Prime Minister DeWever, and the liberal Reform Movement Party (MR) have pushed for significant cuts in government spending, including in the health sector. On the other hand, socialist and centrist coalition partners have been at odds, arguing that the deficit should be reduced by raising taxes on the wealthy.
Belgium is a financially insolvent country in Europe, as bad as Greece, Italy, and France. The national debt to gross domestic product (GDP) ratio is 110.2%, and the fiscal deficit as of last year was 5.2% of GDP, ranking 4th among the 27 member states of the European Union (EU).
The EU requires national debt to be managed at 60% of GDP and fiscal deficit at 3% or less. Belgium is also under pressure from the North Atlantic Treaty Organization (NATO) to increase defense spending. In Korea, a protest against fiscal austerity was held last month with 40,000 people participating, and workers are on strike, making it difficult to prepare a budget.
What to Watch
AI outlook — possibilities, not facts
Report on the results of budget renegotiation by December 16th
Very likely · Within weeks
Open Questions
- Will the coalition partners be able to reach a budget compromise?
- Will the report be approved by Congress on the 16th of next month?
