De Wever poised to offer his resignation as Belgian budget talks fail

Belgian Prime Minister Bart De Wever is expected to offer his government's resignation after coalition talks on the 2026 budget collapsed, plunging his seven-month-old federal coalition into crisis. The failure to agree on next year's budget marks a significant setback for the five-party alliance De Wever leads, raising the prospect of early elections in the eurozone's sixth-largest economy. The budget standoff centers on closing a projected deficit gap that has exposed deep divisions among the coalition partners over spending cuts and fiscal policy. A resignation, if accepted by King Philippe, would leave Belgium without a fully empowered government at a sensitive time for its public finances, which face scrutiny from EU institutions and bond investors. Attention now turns to whether the king will ask the caretaker government to handle pending affairs, whether De Wever can be given a new chance to salvage a deal, and whether the political deadlock pushes Belgium toward snap elections. Markets will watch Belgian bond spreads and the government's ability to pass any interim fiscal measures in the meantime.