Belgian government talks relaunch after local elections
The chief negotiators in Belgium's federal government talks are due to meet again on Wednesday. Time is pressing, but their first meeting since the local elections is not expected to produce any major breakthroughs.
Now that all five negotiating parties have come through Sunday's local elections without major losses, the formation of a federal government can begin in earnest. Negotiators from the N-VA, MR, Les Engagés, Vooruit and CD&V will meet at 12.30.
In principle, things could move quickly, several key players said. Over the past few weeks, thematic working groups have been quietly revising and drafting texts. Only the big sticking points remain to be ironed out by the party leaders and their key aides.
Daunting obstacles
The moment for political courage has come, according to N-VA party leader Bart De Wever, who has been given the mediating role of formateur. However, the remaining obstacles are daunting.
Budget cuts of more than 28 billion euros still loom, and will have to be accompanied by major socio-economic reforms if the new government is to avoid a strict four-year European adjustment path.
The question remains as to what has fundamentally changed since negotiations broke down last summer
De Wever, who has repeatedly stressed the urgency of the matter, wants the budget to be approved by parliament before the end of the year. That way, any reforms can take effect on the first day of 2025 and the year will not be wasted.
However, the question remains as to what has fundamentally changed since negotiations broke down last summer due to irreconcilable differences between two parties. In August, the liberal MR party objected to a capital gains tax that had been included in a draft agreement as a concession to the socialist Vooruit party.
Budget without reforms
Meanwhile, the outgoing government is also preparing a budget for 2025 in case negotiations stall, but it has little freedom to deviate from past policies. If no new government is in place by the end of this year, Belgium will inevitably have a budget without reforms.
In that case, the European Commission will have no choice but to impose a strict four-year adjustment path on Belgium, outgoing Budget state secretary Alexia Bertrand told parliament on Tuesday. With budgetary adjustments and a positive opinion from the Commission and the Council, this path could still be changed to a more relaxed seven-year path later in time.
Bart De Wever, federal formateur and leader of the N-VA party, leaves the Belgian Royal Palace after a meeting with the King to discuss government formation talks, 22 August 2024 © BELGA PHOTO ERIC LALMAND
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