VZCZCXRO2049
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHBS #3438 3371242
ZNR UUUUU ZZH
P 031242Z DEC 07
FM AMEMBASSY BRUSSELS
TO RUEHC/SECSTATE WASHDC PRIORITY 6759
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHNO/USMISSION USNATO 8129

UNCLAS BRUSSELS 003438 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PGOV PINR BE
SUBJECT: Expanded Role for Caretaker Prime Minister the 
Likely Result of Collapse in Effort to Form Next Belgian 
Government 
 
¶1. The King has resumed his consultations following the 
collapse of Flemish Christian Democrat Yves Leterme's six- 
month government formation attempt.  He was closeted with 
Leterme at midday on December 3, having started his session 
almost two hours earlier.  Caretaker Prime Minister Guy 
Verhofstadt (Open VLD - Flemish Liberals) was called to the 
Royal Palace on Saturday and again today, fueling 
speculation about a pivotal role for Verhofstadt during the 
coming weeks and months. 
 
¶2. Verhofstadt's involvement suggests that his 
Liberal/Socialist caretaker government would be tasked with 
drafting and implementing the 2008 budget. Liberals and 
Socialists have no majority in Parliament, but they would 
seek support on the other benches to adopt and implement, 
not only the budget, but also a wider range of law and 
order, and socio-economic measures deemed necessary for the 
functioning of the country.  It is unclear yet if this new 
arrangement would extend to foreign policy matters. 
 
¶3. Meanwhile Verhofstadt would seek to get the 
Constitutional Convention off the ground.  This issue, 
which is partly reponsible for torpedoing Leterme's 
formation wrk, would be composed of majority and 
opposition politicians.  Its job would be to devise a 
consensus on redefining the responsibilities of the federal 
and regional governments.  The widely divergent opinions 
between hardliners on the Flemish and francophone side of 
the language border made it necessary for Leterme to 
abandon his attempt to form a government. 
 
¶4. The story of how Laterme's formation attempt came to a 
dramatic end has become increasingly clear since he 
announced its end on December 1.  The key event was a 
decision by CDH (francophone Christian Democrats) party 
president Joelle Milquet to say "no" at least one of three 
ultimatums issued by Leterme to four potential coalition 
partners (Flemish and francophone Christian Democrats and 
Liberals).  He received positive answers from all the 
parties save the CDH.  Milquet refused to continue the 
talks, arguing that Leterme had changed an earlier version 
an institutional blueprint to satisfy his Flemish 
nationalist allies in the New Flemish Alliance (N-VA). 
(Comment:  Leterme thinks he was done ill by Milquet, who 
had argued against any institutional reforms since the 
talks began in July.  End Comment.) 
 
¶5. The collapse of the government formation talks is a 
terrible personal setback for Leterme, one that will 
diminish his political weight and potential. But CD&V 
(Flemish Christian Democrat) heavyweights tried to put on a 
bright face, saying that Leterme remained their leader, 
adding that the party would only join a future government 
coalition that he directed.  The two Liberal parties blamed 
the Flemish Christian Democrats and the N-VA for the 
failure, but remained available to form a coalition 
government with an institutional reform agenda. 
 
¶6. Speculation about what happens next in terms of the next 
government has taken many forms.  One idea that received 
considerable play over the weekend involved the various 
Socialist and Green parties.  So far not involved in the 
government formation talks, leaders of both groups sent out 
mixed signals during the weekend.  The francophone Greens 
(Ecolo) announced that they would not take up the place 
left vacant by the CDH to salvage the government formation. 
Francophone Socialist Party (PS) leader Elio Di Rupo said 
that the country needed a "grand coalition" capable of 
handling the socio-economic and institutional issues. 
(Note:  the current grouping of three parties, Flemish and 
francophone Liberals, and the CD&V/N-VA alliance is about 
five seats short of a majority, hence the need to find a 
new partner.) 
FOX