The Belgian national debt amounts to over €735 billion, more than 110% of Belgium's GDP, while 60% is permitted by the EU.
Belgium’s Prime Minister Bart De Wever will offer his government's resignation to King Philippe later on Monday following failed overnight budget talks, local media are reporting.
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At 9:30 CET, De Wever will have an audience with the King, public broadcaster VRT said.
It comes after overnight negotiations with his cabinet on the budget failed to reach an agreement.
The government must save €10 billion to stay within EU spending limits.
The budget deficit amounted to 5% last year, while a deficit of a maximum of 3% is permitted under European rules.
The Belgian national debt amounts to over €735 billion, more than 110% of Belgium's GDP, while 60% is permitted.
Due to the failure to reach an agreement, interest rates on government bonds have increased, and Belgium has to pay more to meet its debt obligations.
If the King accepts his resignation, new elections will be called. The King may also refuse, or hold the resignation in consideration.
This is a developing story and our journalists are working on further updates.