VZCZCXYZ0000
RR RUEHWEB

DE RUEHBS #2393/01 2081458
ZNR UUUUU ZZH
R 271458Z JUL 07
FM AMEMBASSY BRUSSELS
TO RUEHC/SECSTATE WASHDC 6011
INFO RUEHRL/AMEMBASSY BERLIN 1556
RUEHLO/AMEMBASSY LONDON 1610
RUEHLE/AMEMBASSY LUXEMBOURG 8346
RUEHFR/AMEMBASSY PARIS 1953
RUEHTC/AMEMBASSY THE HAGUE 8500

UNCLAS BRUSSELS 002393 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
RABAT FOR DCM BUSH 
 
E.O. 12958: N/A 
TAGS: PGOV PINR BE
SUBJECT: Belgian Leader Leterme 
Stumbles in Major League Debut as he 
tries to form a Cabinet 
 
¶1. (U) For Yves Leterme, the first week 
of trying to form Belgium's next 
government has been a sobering 
experience.  His interlocutors at the 
government formation talks have given 
him a rude welcome to the premier 
division of Belgium's political world. 
To make matters worse, Leterme himself 
has contributed to the dismal show with 
two embarrassing gaffes, both of which 
occurred on Belgium's National day. 
 
¶2. (SBU) As has been widely reported in 
the international press, Leterme could 
not remember why his country celebrated 
its national day on July 21, and he 
could not remember the French version 
of the national anthem.  (Leterme is a 
Fleming.)  The cascade of mistakes fed 
already extant suspicions that he was a 
closet Flemish nationalist, and sparked 
a series of stinging attacks in the 
francophone press.  The gaffes and the 
press critiques together put him on the 
defensive as the formation talks began 
on July 23. 
 
¶3. (U) The first week of direct 
negotiations among the two Christian 
Democratic and two liberal parties has 
produced an agreement, in principle, on 
lowering income taxes.  After having 
dragged her feet for several days, 
francophone Christian Democratic Party 
(CDH) president Joelle Milquet caved 
in, but immediately added that in 
working out the tax cut modalities, she 
would make sure to fulfill her party's 
promises on upgrading pensions and 
social welfare entitlements.  This 
first hurdle taken allowed the two 
liberal parties to boast about a major 
concession wrenched out from the 
Christian Democrats. 
 
¶4. (U) As the week closed, Leterme 
announced the formation of working 
groups on the politically touchy 
subject of fashioning incentives and/or 
sanctions to "force" the long-term 
unemployed back to work.  The Liberals 
believe in sanctions, while the 
Christian Democrats favor less 
draconian measures.  Although this 
discussion may well go the Christian 
Democrats' way, they are taking place 
against the gloomy backdrop created by 
growing concerns about the 2007 budget 
and the government's ability to keep it 
out of the red without further belt 
tightening measures. 
 
¶5. (SBU) Leterme also has conducted his 
first exploratory discussions on the 
institutional agenda.  He is handling 
this matter personally in a series of 
direct talks with the other party 
leaders.  The presence at the 
negotiating table of Bart De Wever, the 
Flemish nationalist leader of the N-VA, 
and his francophone counterpart, 
Olivier Maingain of the FDF, will not 
necessarily contribute to any easing of 
tension over linguistic questions. 
 
¶6. (SBU) Comment:  Local analysis of 
the first week of coalition talks 
reflects the commentator's linguistic 
allegiance.  While there is a consensus 
that the discussions are progressing at 
a disappointingly slow pace, most 
Flemish commentators profess a relative 
indifference, arguing that this has 
happened before.  The francophone 
press, reflecting the fears of its 
audience, appears deeply concerned that 
Leterme has let loose "institutional 
demons" that ultimately might threaten 
the foundations of the Belgian state. 
Some Francophone commentators are even 
pleading with outgoing premier Guy 
Verhofstadt (Open VLD) to come back. 
 
¶7. (SBU) At this stage, we see no 
reason not to believe that Leterme will 
succeed in cobbling a government 
together between "orange" (the 
Christian Democrats) and "blue" (the 
liberal parties).  From our 
perspective, the present difficult 
discussions between the four parties 
are the natural result of having former 
rivals sit down together.  The way the 
electorate has shuffled the cards, 
there is no real alternative now to a 
government involving Liberals and 
Christian Democrats.  In this process 
the formateur plays a key role, and 
Leterme's clumsy antagonizing of the 
francophone public opinion is certainly 
not the best way to secure success. 
 
 
IMBRIE