Belgian King holds De Wever's resignation until Friday as budget talks stall

A budget deadlock and a detour to the palace

The government has been looking for 10 billion euros in savings for its budget for about two months, and the talks have stalled. On Thursday, 5 November, party leaders were still being received by the King. N-VA chair Valerie Van Peel arrived last in the line of party chairs and left without commenting. The King is holding Prime Minister Bart De Wever's resignation under consideration until Friday, 6 November, when it should become clear how the budget will be drafted. A snowball effect of rising interest costs is looming if the deadlock drags on.

Elections as a threat and a plea for talks

Maxime Prévot of Les Engagés, the deputy prime minister, said the chance of elections is 50/50. All majority parties want to give the talks another chance, and none is pushing for a new vote. Budget minister Vincent Van Peteghem of CD&V said on Tuesday evening, 3 November, in the programme De tafel van Ruben that he was frustrated that the responsibility for real solutions was not being taken.

“I understand people's frustrations, but elections would not be good for any party.”

Van Peteghem warned that even an identical election result would bring six to eight months of government negotiations, which could unsettle financial markets. Without a deal, he said, the country would come closer to Greek conditions than people think.

“Without an agreement, we come closer to Greek conditions than we would think.”

He hopes a solution can be reached within one or two weeks, and in an optimistic scenario two days of real negotiation could be enough.

Youth wings call for responsibility

The youth organisations of N-VA, CD&V, MR and Les Engagés issued a joint press release calling for a sense of responsibility in national politics. They argued that the 10 billion euros in planned savings must be delivered whatever happens to the political crisis. The Jongsocialisten, the youth wing of Vooruit, did not sign. Their chair Brent Bellefroid said:

“We are not going to do that at the expense of workers, the sick and pensioners.”

Bellefroid argued that the effort must be shared fairly, with a contribution from the wealthiest, millionaires included.

The sticking point: the strongest shoulders

De Wever's latest budget table assumed a contribution of 1.2 billion euros from the strongest shoulders. MR considered that too much, while Vooruit said it was too little, and socialist deputy prime minister Frank Vandenbroucke warned of "an empty box". According to sources, the table held 250 million euros in measures on companies, plus 170 million euros in savings on companies with no staff and only one client. Raising the securities tax rate from 0.3 to 0.4 percent was meant to yield 300 million euros, and a new tax on registered shares of listed companies another 300 million euros.

Securities tax rate increase (0.3 to 0.4 percent)300

Tax on registered shares of listed companies300

Measures on companies250

Savings on companies with no staff and one client170

Securities tax rate increase (0.3 to 0.4 percent)

300 million euros

Tax on registered shares of listed companies

300 million euros

Measures on companies

250 million euros

Savings on companies with no staff and one client

170 million euros

Data from the article text

Registered shares are held directly by the company, often in family firms and SMEs, though larger companies are also included, and founders were to be exempted. Odoo founder and CEO Fabien Pinckaers threatened in the summer to leave the country if a wealth tax on his shares were introduced, a bill he put at 30 million euros in taxes each year. Vooruit is lukewarm on raising the securities tax, arguing the tax is nearing its ceiling. The party also doubts a tax on registered shares would survive the Constitutional Court, fearing discrimination. CD&V sees the securities tax as the best way to target the truly rich.

What comes next

The King's decision on De Wever's resignation is due by Friday, 6 November. Until then, the question of who pays the strongest shoulders' share remains the central point of the talks. The securities tax and the planned tax on registered shares sit at the heart of the dispute. No party is openly aiming for new elections, yet the 50/50 estimate from Prévot keeps that outcome in view.