Federal coalition talks enter final phase as tensions grow

The Belgian federal government negotiations are entering a decisive phase as formateur Bart De Wever faces mounting pressure to secure a breakthrough. Talks this weekend will focus on the budget and key socio-economic reforms. Without an agreement, De Wever is likely to step down as formateur. 

Negotiators from N-VA (right-wing), Les Engagés, Vooruit (socialist), MR (liberal) and CD&V (Christian Democrats) are set to engage in bilateral discussions with formateur Bart De Wever on Friday. Full coalition talks are scheduled for the weekend. De Wever is seeking a breakthrough in the negotiations as he is facing another deadline next Friday, when he is expected to report to the King.

However, significant hurdles remain. The latest version of De Wever’s reform plan, which leaked earlier this week, proposes a total budgetary adjustment of 23 billion euros. The money must come from reforms in the labour market, pensions and security, and taxation. 

Tax and pension

Vooruit, CD&V, and Les Engagés remain unconvinced by De Wever’s proposals. They are particularly sceptical of the proposed 8 billion euros in projected economic returns (mostly by bumping the employment rate up to 80 per cent) and argue that wealthier individuals should contribute more. Currently, the plan includes 2.4 billion euros in contributions from high earners.

Pension reforms also remain a sticking point, with opposition to further cuts following recent large-scale protests. De Wever initially proposed savings of 3 billion euros but now reduced the target to 2.2 billion euros by 2029. However, union pressure remains high, particularly on the centre- and left-wing parties involved in the talks.

Exit

De Wever remains steadfast, insisting that Belgium must implement substantial labour market and pension reforms to restore financial stability. He continues to advocate for tax cuts by 2027, despite opposition from coalition partners.

With the deadline looming, tensions are running high. If no agreement is reached, De Wever may step down as formateur, something he has hinted at over the past few weeks. That could plunge Belgium into prolonged political uncertainty. A failure to reach a deal would mean restarting negotiations from scratch - seven months after the elections. 

^{Formateur Bart De Wever © BELGA PHOTO DIRK WAEM}