Bart De Wever's Challenge: Extending Belgium's Coalition Talks

Bart De Wever, appointed by King Philippe, is leading coalition talks for a new Belgian government. Granted an extension until Thursday, De Wever is navigating complex negotiations among five parties. The coalition, named Arizona, is focused on social-economic reforms, including labor and tax reform.

Bart De Wever, the Belgian politician appointed by King Philippe to spearhead coalition talks following the June elections, has received an extension until Thursday from the king to establish a government, as stated by the Royal Palace on Monday.

De Wever is attempting to form a coalition consisting of five parties, among them his own Flemish nationalist N-VA, the largest party in both Flanders and the entire country, and the liberal MR, who dominate Brussels and French-speaking Wallonia. "Mr. De Wever reported to the King on his progress to form a new government. A follow-up meeting is scheduled for Thursday evening, Aug. 22," said the palace statement.

The other parties involved in the talks are the Flemish Christian Democrats (CD&V), Flemish socialist party Vooruit, and francophone centrist party Les Engagés. This coalition effort, known as the Arizona coalition, references the blue, red, yellow, and orange colors of the parties involved, resembling the U.S. state Arizona's flag.

Negotiations hit a snag after representatives of the five parties failed to reach consensus on a proposal by De Wever, leading to a suspension of talks early Monday, according to Belgian media. While the palace has not disclosed details, reports indicate discussions revolve around significant social-economic reforms, especially labor market, pension, and tax reforms.

Financial dailies in Belgium highlight that the parties are working towards a substantial overhaul of financial asset taxation. Key proposals include introducing a 10% capital gains tax on financial assets sales, exempting the first 6,000 euros ($6,600) of capital gains, reducing the withholding tax on financial assets to 25% from 30%, and extending tax exemptions on savings accounts to various financial instruments, state bonds, and other fixed-income revenues.

Belgium holds the world record for the longest government formation, with the previous record being 541 days in 2010-2011.

(With inputs from agencies.)