Belgian political crisis to break records on Christmas Day

M&C

Brussels - Belgians are bracing themselves for their ongoing political crisis to break all records, as French and Dutch-speaking parties await the latest draft proposals by a royally appointed mediator.

Belgian media noted that December 25 will be the 195th day with no elected government in place - an event that will overshadow the 194 days it took in 2007 to solve a post-electoral stalemate.

On June 13, voters in Dutch-speaking Flanders voted en masse for the N-VA, a nationalist party calling for the gradual dissolution of Belgium, while, in French-speaking Wallonia, the pro-central government Socialist Party (PS) prevailed.

Reconciling opposite points of view has so far proved impossible, with the N-VA mostly playing the role of the naysayer - for example by rejecting a deal in October that had been accepted by all the other six parties involved in coalition talks.

The N-VA insists on greater autonomy for Flanders, so that its wealthy taxpayers can minimize subsidies to poorer Wallonia. French- speakers have accepted the principle, but the two sides cannot agree on the funding formula for Brussels, Belgium's bilingual and autonomously run capital.

The other thorny issues on the table are the transfer of powers from the federal state to the French and Dutch-speaking entities and the splitting up of a bilingual electoral district in Brussels.

Johan Vande Lanotte, the 'conciliator' appointed by King Albert II in October after the failure of five previous mediation attempts, is due to present 'provisional' proposals on the three points 'before Christmas,' Belgian newspaper Le Soir reported.

A final document is due to be presented on January 3, with Van De La Notte expecting a reply by party leaders on January 5.

Positive responses could potentially allow the king to appoint a premier-designate, who would lead concrete government-formation negotiations. Otherwise, another mediator is likely to be given the thankless task of trying once again to break the impasse.

The political crisis is taking place against the backdrop of the eurozone crisis, which is sparking concern that Belgium - with its government debt tipped to climb over 100 per cent of gross domestic product in 2011 - may come under scrutiny from the markets.

Last week credit ratings agency Standard and Poor's (S&P) warned that the country may lose its AA+ grade - the second highest in S&P's books - within six months if it fails to quickly equip itself with a fully-functioning government.

The N-VA leader Bart De Wever added fuel to the flames by claiming in an interview with German weekly Der Spiegel that 'Belgium, after endless political quarrels, has become the sick man of Europe.'

Herman Van Rompuy, a former Belgian premier who is now president of the Council of the European Union, was the latest political figure to reject that suggestion.

'The economic fundamentals of Belgium are healthier than people believe ... the next government will have to do some reforms, but we don't have major problems for the moment,' he said at a meeting with Le Soir readers on Wednesday.

Throughout the crisis, Belgium has been managed by a caretaker government led by the outgoing prime minister, Yves Leterme, which was also able to make a success of its six-month stint at the EU presidency, ending on December 31.

Some observers say this suggests that the country is more than capable of surviving without an elected government. Pessimists retort that the political crisis is just a prelude to a final showdown, leading to the dissolution of the country.