Belgian PM De Wever Resigns as Budget Talks Collapse; King Philippe Delays Decision

Key points

• De Wever met with King Philippe for approximately 1.5 hours on Monday morning to offer his government's resignation following failed budget talks.
• King Philippe stated he is 'taking his decision under consideration' and will consult with coalition party chairs starting Tuesday, with a follow-up meeting scheduled for Friday.
• The core disagreement lies between the conservative N-VA and liberal MR, who favor spending cuts, and the centrist Les Engagés, socialist Vooruit, and Christian Democrat CD&V, who want €1 billion to €1.5 billion in savings from taxing higher incomes.
• Belgium must save €10 billion to comply with EU spending limits, as its deficit was 5% last year against a 3% cap, and its national debt exceeds €735 billion, or 110% of GDP.
• The failure to reach an agreement has caused interest rates on Belgian government bonds to rise, increasing the cost of debt obligations.
• De Wever took office in February 2025 after 234 days of coalition negotiations, and this is the second time in 18 months he has faced a budget impasse with the same coalition.

Background

This is the second major budget crisis for the 'Arizona' coalition in 18 months. In November 2025, De Wever also faced a failure to reach an agreement on saving €10 billion but did not offer his resignation; instead, he requested a 50-day extension from King Philippe. The current crisis occurs against a backdrop of growing student protests and frequent union-led 'national action days' across Belgium. The coalition, formed after 234 days of negotiations, includes De Wever's N-VA, liberals MR, centrists Les Engagés, socialists Vooruit, and Christian Democrats CD&V. Belgium is one of the most heavily indebted EU nations, alongside France and Italy, with debt exacerbated by the COVID pandemic and energy crisis.

How outlets are covering it

Euronews emphasizes the internal coalition divide, noting that Foreign Minister Maxime Prévot cited 'too many sticking points' and that Deputy PM David Clarinval blamed the socialist Vooruit for insisting on higher taxes. AP News frames the resignation as a failure of De Wever's initial mandate to tackle budget problems, highlighting that Belgium's debt load has worsened due to the pandemic and energy crisis. Both outlets agree that King Philippe is withholding his decision to allow for further consultation, but Euronews notes the risk of falling back on provisional 'twelfths' for a second year, while AP stresses the broader context of student protests and union strikes. Opposition party Groen's Matti Vandemaele criticized De Wever as 'the prime minister of standstill,' arguing he failed to align his government with his own N-VA program.

Why it matters

The collapse of Belgium's budget talks threatens to trigger new elections and a prolonged political crisis, which King Philippe warned the country cannot afford. The impasse has already led to rising interest rates on government bonds, increasing the cost of debt obligations. With a December 31 deadline to secure a 2027 budget, the failure to reach an agreement could force Belgium to operate on provisional 'twelfths' for a second consecutive year, undermining fiscal stability and EU compliance. The crisis also highlights the deep left-right divide within the coalition, with conservatives favoring spending cuts and centrists and socialists pushing for higher taxes on wealthy individuals, a divide that may persist even if a new government is formed.

What to watch

King Philippe will consult with the chairs of the coalition parties starting Tuesday and is scheduled to meet with De Wever again on Friday. If the King accepts the resignation, new elections will be called. The government must still reach an agreement on the 2027 budget by December 31 to avoid operating on provisional 'twelfths' for a second year. The rising interest rates on government bonds may continue to increase the cost of debt obligations if no agreement is reached.