Belgium's Coalition Talks at Risk Over Budget Dispute

Brussels is facing a political impasse as coalition negotiations among key parties have come to a standstill, primarily due to disagreements over budget cuts and tax proposals. A contentious 10% tax on share profits, proposed by N-VA leader Bart De Wever, has intensified the debate. With a looming deadline of September 20 to address a staggering €28 billion deficit, the urgency for a cohesive budget plan is palpable. Political analyst Sinardet highlights the challenges posed by the unclear election results, which have left parties struggling to form a viable government. The coalition talks involve five parties: the right-wing N-VA, the center-right MR, the center-left Vooruit, the centrist Flemish Christian Democrats, and the Walloon Committed Ones. De Wever, who has led the N-VA since 2004 and serves as the mayor of Antwerp, is spearheading the negotiations. However, the proposed tax on stock profits has met with fierce opposition from the Francophone liberal MR party, complicating the discussions further. To address its high deficit and public debt, Belgium must implement significant budget cuts, with €14 billion expected from changing practices and the remaining €14 billion from either increased taxes or reduced expenditures. De Wever's proposal for a tax on share profits is seen as essential by Vooruit, yet it faces resistance from other coalition members. As negotiations drag on, De Wever met with King Philippe to report on the lack of progress. The situation is critical, as Belgium's excessive deficit and debt have drawn scrutiny from the EU, raising concerns about the country's financial stability.