Belgium is entering a new period of political uncertainty after government coalition partners failed to reach an agreement on the multi-year federal budget. Prime Minister Bart De Wever is expected to visit the royal palace today to submit his resignation to King Philippe.

According to the French-language newspaper Le Soir, a meeting of the restricted Council of Ministers (Kern), held on Sunday evening, ended shortly after midnight without an agreement, despite lengthy consultations and new proposals put forward by the prime minister.

The negotiations centered on finding approximately €10 billion by 2029 in order to reduce the budget deficit and ensure the sustainability of public finances.

What will happen at De Wever’s meeting with King Philippe?

De Wever’s meeting with the king is expected to determine the next political developments. It remains unclear whether the monarch will accept the resignation or ask the prime minister to continue his efforts to reach an agreement, giving the coalition partners a new deadline.

As Le Soir notes, none of the government’s deputy prime ministers wanted the negotiations to be halted, as they continued to believe that a compromise was possible.

“Bart is going to see the king tomorrow. I hope this will give the coalition partners a shock, bring about a change in mindset and lead to one final attempt to reach an agreement between Monday and Tuesday. Otherwise, this will be a deep crisis,” one of the deputy prime ministers reportedly said, according to the newspaper.

Where do the disagreements lie?

The main point of contention among the five parties in the Arizona coalition (N-VA, MR, Les Engagés, CD&V and Vooruit) concerns how the fiscal burden should be distributed and, more specifically, the balance between spending cuts and increases in tax revenue.

Disagreements among the coalition partners focused primarily on how the budgetary burden should be allocated. The liberal MR rejected an increase in VAT and called for greater emphasis on spending cuts, while the socialist Vooruit and centrist Les Engagés insisted on higher taxation of high incomes and large fortunes.

Among the proposals discussed were increases in taxes on capital gains and stock market transactions. According to Le Soir, Les Engagés and MR attempted to limit the required fiscal effort to €8 billion rather than the €10 billion sought by the prime minister, but without success.

De Wever warned of the risk that Belgium’s credit rating could be downgraded if no agreement were reached, highlighting the economic consequences of any further deterioration in the country’s public finances. At the same time, he ruled out resorting to the system of provisional monthly budget appropriations, which would allow the country to enter 2027 without an approved new budget.

Despite the deadlock, the prospect of the government’s immediate collapse is not considered inevitable. As Le Soir points out, there is still a belief within the governing coalition that a compromise can be reached, provided the political partners show greater willingness to make concessions.

De Wever left his office at around 2:30 a.m., leaving open the possibility of a deeper political crisis, the outcome of which will depend to a large extent on the king’s decisions and the course of negotiations over the coming hours.