Belgian government crisis looms as budget talks collapse

The Belgian government early on Monday again failed to reach an agreement on next year’s budget, triggering a possible government crisis as Prime Minister Bart De Wever is likely to offer his resignation, Belgian newspaper De Tijd reported. The government has been arguing for months over €10 billion ($11.2 billion) in budget cuts and tax increases De Wever says are needed to keep state finances in check. De Wever was set to meet Belgian King Philippe later on Monday to hand in the resignation of his government, sources told De Tijd.The king would likely not immediately accept the resignation, the paper said.De Wever’s Flemish nationalist N-VA and the liberal MR are seeking cuts in healthcare spending, but their socialist and centrist coalition partners have demanded higher wealth taxes.Interest rates on Belgian government bonds have risen sharply in recent months.De Wever has warned that a looming debt and ​interest-cost spiral ⁠would force the government to borrow money only to pay the interest on existing loans.