Belgian government resigns amid 10 billion euro budget gap

MR walked out over a capital gains tax and a financial transaction tax. Belgium's deficit hit 5.2% of GDP in 2025.

The five coalition parties could not agree how to find 10 billion euros, money the government top said is needed to keep the Belgian debt from derailing.

On 2 November King Philippe met De Wever. If the King accepts the resignation, the government falls and new elections must take place within forty days. The King warned that Belgium cannot afford a prolonged political crisis in the current economic climate. The Palace said he is appealing to everyone's sense of responsibility and urges all stakeholders to prioritize the general interest and a spirit of compromise.

MR walked out over taxes. On Sunday afternoon Les Engagés proposed a much higher capital gains tax and a financial transaction tax to raise money from the strongest shoulders. MR found that unacceptable. Vooruit and Les Engagés insisted on a bigger contribution from the broadest shoulders; MR refused.

Some at the table wanted to cut the exercise down to 8 billion euros to reach a deal anyway, according to a source quoted by De Morgen. De Wever found that went against the objective. The prime minister put his 'schuldenrem' back on the table, a freeze of federal spending worth about 4 billion euros. The other parties had already rejected that plan in mid-October.

Anders president Frédéric De Gucht said two months of talks produced only a resignation letter, while businesses close and families cannot pay their bills. "Deux mois à négocier, et la seule chose qui en ressort c'est une lettre de démission," he said. Belgium ran a deficit of 5.2% of GDP in 2025, and Politico reported that is expected to rise further next year.