Belgian government in crisis after budget talks collapse

Belgian Prime Minister Bart De Wever tendered his resignation to King Philippe on November 2, 2026, following the breakdown of coalition talks over €10 billion in fiscal adjustments. Facing a public debt forecast at 110% of GDP, the five-party coalition split over proposed healthcare cuts and wealth taxes. King Philippe withheld his decision on the resignation, scheduling party leader consultations ahead of a follow-up meeting on November 6, while trade unions and student groups continue anti-austerity demonstrations.

King Philippe's handling of the Prime Minister's resignation

• ▪King Philippe scheduled a follow-up meeting at the Royal Palace with Bart De Wever for Friday, November 6, 2026
• ▪The Royal Palace issued a statement warning that Belgium cannot afford a long political crisis amidst geopolitical uncertainty and economic challenges
• ▪Belgian Prime Minister Bart De Wever tendered his resignation to King Philippe
• ▪If King Philippe accepts Prime Minister Bart De Wever's resignation, the monarch could ask alternative political parties to attempt coalition formation or call fresh national elections
• ▪King Philippe withheld his decision on accepting Bart De Wever's resignation and scheduled consultations with coalition party leaders beginning November 3, 2026

Coalition disagreements over budget measures

• ▪Belgium's French-speaking liberal MR party opposed a proposed VAT increase within Prime Minister Bart De Wever's government's fiscal plan, arguing it would fuel inflation
• ▪Belgian Deputy Prime Minister Maxime Prevot of Les Engagés stated that wealthy citizens must contribute to budget balancing and called for Bart De Wever's coalition parties to resume talks
• ▪Parties within Belgian Prime Minister Bart De Wever's five-party coalition reached an impasse over proposed public spending cuts, including healthcare cuts pushed by N-VA and MR, and proposed wealth taxes requested by socialist and centrist partners

Belgium's fiscal challenges and public debt

• ▪Prime Minister Bart De Wever said the Belgian government is seeking €10 billion in budget cuts and tax increases by 2029 to stabilize public finances and reduce its deficit
• ▪Belgian Prime Minister Bart De Wever has warned of an interest snowball, where the country risks taking on new loans solely to cover interest on existing debt
• ▪On November 2, 2026, Belgium's 10-year benchmark bond yields traded between 4.36% and 4.39%, up from 3.48% four months prior, reflecting financial market stress
• ▪The European Commission forecast Belgium's national debt-to-GDP ratio to reach approximately 110% this year, with a general government deficit exceeding 5% of GDP

Anti-austerity protests and demonstrations

• ▪Trade unions in Belgium have organized rolling anti-austerity protests and national action days bringing tens of thousands into the streets
• ▪Demonstrators demanding increased spending on public services have clashed with police in recent weeks across Belgium, France, Spain, and Italy