BRUSSELS (Reuters) – Belgian King Albert II on Monday accepted the resignation of Prime Minister Yves Leterme its government five months, plunging the country into a crisis that could jeopardize the recovery of the economy and its position in Europe.
The monarch asked Leterme, 49, to stay in his job as interim staff, the royal palace said in a short statement, four days after the coalition collapsed over a dispute between French-speaking parties in Holland.
King had tried to alleviate the situation before the weekend to consult with party leaders and asking the Finance Minister Didier Reynders, who tried mediate the dispute. Reynders asked to be relieved of that task on Monday.
Unless the king announced a new initiative, Belgium seems to go to early elections before those scheduled for 2011.
That could plunge into chaos preparations for its six-month presidency of the European Union, starting in July.
Leterme, who has resigned twice office in three years, said in a written statement that he regretted that he had not found a negotiated solution to the crisis.
“While waiting for the head of state initiatives, the Government will continue to effective monitoring of current affairs in the interest of the country and citizens, “the statement said.
For the economists worry that the political paralysis of the country of 10.6 million inhabitants can undermine efforts to bring its national debt below 100 percent of Gross Domestic Product (GDP).
GDP fell 3.0 percent last year and possibly grow a modest 1.0 percent in 2010. The budget deficit for this year is at 4.8 percent of GDP.
(Reporting by Philip Blenkinsop, editing by Marion Giraldo Spanish and Steve Addison)