Slow progress on federal government formation

Belgium remains without a newly formed federal government after negotiations failed to break a deadlock last week.

After a whole day of bilateral talks, Bart De Wever’s plenary consultation with all of the five parties lasted just half an hour before breaking up without agreement. De Wever resigned from his formateur post not long after.

Little has leaked as to what exactly went wrong, but in a brief statement to television reporters, Les Engagés president Maxime Prévot (pictured) said he still believed in the so-called Arizona coalition (N-VA, Vooruit, CD&V, MR and Les Engagés).

Other sources point to a conflict between MR and Vooruit over the introduction of a capital gains tax on shares, which was part of De Wever's socio-economic paper and essential for the Flemish socialists, but which MR is opposed to.

MR chairman Georges-Louis Bouchez denied that he was a major cause of stalled negotiations and De Wever’s subsequent resignation, saying “there is nothing wrong with taking several weeks to discuss tax reform and the budget.”

Bouchez also said the deadlock did not arise over just one tax, but over several: capital gains tax, VAT, excise duty and benefits on commuting.

“Belgium is a tax hell,” said Bouchez. “Taxes are a necessary evil if the state is to carry out its duties.

"Everyone needs to be reasonable, we need to stop playing games because I think that if we levied a tax on political game-playing, then there would no longer be a problem in the state budget.”

Following De Wever’s resignation and hearings at the Royal Palace, Maxime Prévôt, president of Les Engagés, was selected to replace him and given until 2 September to find common ground between the various parties. According to reports, some progress has been made in further discussions on Monday.

CD&V president Sammy Mahdi, who was also considered for the formateur post, said Prévot was “the right person in the right place”.

“Since the decision to work more together as a centrist family, I have got to know him as a sensible and super-respectful man,” Mahdi said.

“Together, over the last few weeks, we have been looking for solutions. From the centre, we will do everything to make this government possible in order to get the country back on track.”

Regional government negotiations have also stalled in Brussels. Many Brussels politicians say they want to speed up government formation, with Les Engagés leader Christophe De Beukelaer calling on negotiators not to dawdle.

MR’s David Leisterh would like to conclude before 20 September, as that is when Belgium officially has to submit the 2025 budget to the European Commission, including the budget of the regions.

But on the Dutch-speaking side, talks are at an impasse for the time being – not that this poses much of an issue, according to experts.

“We in Brussels have become used to rapid government formation, so we are not familiar with such a long period of uncertainty,” Dirk De Smedt, director general of Brussels Taxation, told Bruzz. “On the other hand, everyone from the caretaker government remains in post.”

Gerd Van Den Eede, deputy director-general of the Brussels regional civil service, also noted no problems for the time being.

“I feel that everything is under control – even in the cabinets, they remain responsive, even if they have to manage with fewer staff in the meantime,” Van Den Eede said.

“The impact of the ongoing cases is not evenly distributed, though. Some administrations are less affected because they work with multi-year budgets and planning that has long been approved.

"In the long run, it may become more difficult to fill certain mandates. For some posts, a replacement has to come soon, the longer the government formation takes, the less preparation time we get for that. But the resigning mandate holders can stay on for a while longer in the extreme."

However Caroline Sägesser, a historian affiliated with research centre CRISP, expressed doubts.

“Brussels has no experience with long periods of caretaker government, which might cause problems,” Sägesser said.

“The federal government does show that a lot is possible institutionally, for example, the Council of State ruled that a caretaker government must devote itself to day-to-day business and all matters that require urgent action.

"But if you don't have a government for a very long time, all matters that have been left pending automatically become urgent."

Yves Lemmens, director general at the Brussels Regional Housing Company (BGHM), said, “It would be best, both for the people of Brussels and the administration, that there is a new government as soon as possible. But, that does not mean we are sitting still here.”

Most agree that September will be a crucial month for the formation, with Van Den Eede of the Brussels civil service of the belief that it is a feasible goal.

“I feel the will is there among the negotiating parties,” said Van Den Eede. “That is why I still believe in a new Brussels government before the municipal elections.”

Photo: James Arthur Gekiere/Belga