Resignation creates fresh problems for Belgium

The lead negotiator in Belgium’s drawn-out government formation resigned yesterday after talks for a 2012 budget ground to a halt, a move which threatened to derail the country’s near 18-month world record search for a new administration.

Elio Di Rupo, leader of the French-speaking Socialists, had attempted to form a government based on a six-party coalition of Dutch- and French-speaking Socialists, Liberals and Christian Democrats, but there was little common ground on how to make the budget cuts mandated by the European Union.

Parties in the debt-heavy country had sought to save €11.3 billion and keep the country’s deficit below 2.8 per cent of gross domestic product, in line with EU rules, but could not agree how to divide the deficit reduction between new taxes and savings.

When the budget talks – essential to the formation of a new government – made no progress yesterday, Mr Di Rupo handed his resignation to King Albert II.

The king said he would decide on Mr Di Rupo’s resignation at a later stage.

In a statement, the palace said: “The king reminds everyone of the gravity of the current situation and underlines that the defence of the common interest of all Belgians and the European deadlines require a very rapid solution to the political crisis.”

Mr Di Rupo was the latest politician to lead the talks and seemed to have made some progress by securing an agreement on constitutional reform and electoral boundaries in September, a key issue delaying progress until that point.

He has handed in his resignation once before, in July, when talks over the electoral boundaries collapsed. But the palace did not accept his resignation and talks resumed shortly after.