BRUSSELS: Belgian politician Bart De Wever, appointed by King Philippe to lead coalition talks following the country's June election, resigned on Thursday, the palace said.

"The King has accepted his resignation and will start consultations tomorrow with the chairmen of the five parties participating in the government negotiations," the palace said in a post on X.

De Wever, whose Flemish nationalist N-VA became the largest party in Flanders and in Belgium as a whole, has tried to form a government with liberal Francophone party MR, Flemish Christian Democrat party CD&V, Flemish socialist party Vooruit and Francophone centrist party Les Engages.

Talks were extended this week after negotiations stalled over MR's opposition against a capital gains tax, party spokespeople have told Belgian media.

The talks hinge on a major package of social-economic reforms proposed by De Wever, notably labour market, pension and tax changes, as well as spending cuts.

Belgium needs to clean up its government finances as it is one of seven EU countries for which the European Commission has proposed disciplinary measures for excessive budget deficits.

"We laboured for weeks on the major reforms this country needs...we had an opportunity to put together an ambitious government. This is sour, and the centre is not to blame, we do not give up," CD&V president Say Mahdi said on Instagram.

With the Flemish liberals and francophone socialists in the outgoing coalition having taken a beating in the election, and cooperation with far-right Vlaams Belang ruled out by centrist parties, De Wever's proposed coalition is one of the few that would guarantee a solid majority in the 150-seat national parliament.

While the talks continue, the government of outgoing Prime Minister Alexander De Croo - whose Flemish liberal party slumped in the June poll - will stay on in a caretaker capacity.

 - Reuters