Belgium: De Wever submits resignation after deadlock over 2027 budget

Belgian Prime Minister Bart De Wever submitted his resignation to King Philippe on Monday after negotiations over the 2027 federal budget ended without an agreement.

The King has not yet decided whether to accept the resignation. He will consult the parties in the governing coalition in the coming days and has called on all political forces to take responsibility, stressing that Belgium cannot afford a prolonged political crisis under the current circumstances.

De Wever’s decision to go to the Royal Palace followed a weekend of fruitless talks with his ministers. The dispute centers on proposals to raise taxes on people with higher incomes and greater wealth.

Vooruit, CD&V and Les Engagés want those with greater financial means to shoulder a larger share of the tax burden. MR and N-VA, the coalition’s two main liberal and nationalist parties, have opposed the proposal.

De Wever arrived at the Royal Palace shortly after 09:30, met with King Philippe for more than an hour and left around 11:00. If the King accepts his resignation, Belgium could head toward new elections. Another possibility is the formation of a new government based on the political makeup resulting from the last elections.

The government could also continue working after the resignation is submitted. That would give the parties a chance to continue negotiations and avoid temporary budgets.

De Wever has previously opposed funding through the provisional twelfths system. Under this mechanism, the government’s monthly spending cannot exceed one-twelfth of the last budget approved for 2026.

The prime minister aimed to raise around 10 billion euros through spending cuts or new sources of revenue to reduce the budget deficit by 2029. The state of public finances remains worrying: the deficit has reached 5.2% of gross domestic product, the highest level in the eurozone, while public debt is expected to exceed 110% of GDP this year.

Only France, Italy and Greece have higher public debt than Belgium relative to GDP, at 116%, 137% and 146%, respectively.

Economy Minister David Clarinval responded to the failure of the talks on the social media platform X. He held the prime minister responsible for the lack of reforms that would reduce public spending, arguing that tax increases can no longer cover the growing deficit.

Clarinval called for structural changes to government spending, as well as measures to support competitiveness and the creation of new jobs. According to him, the latest proposal, discussed on Sunday evening, included more than 3 billion euros in new taxes, deepening disagreements within the governing coalition.