Pessimism had been growing at the weekend as it became clear that the high-level working group tasked with pounding out the details of new financial arrangements, including the amount of personal and business taxation that can be levied by the regions, was not on the road to an agreement the N-VA could countenance. De Wever issued an ultimatum to the French-speaking parties on the question of the splitting of personal taxation, which earned him the immediate criticism of Groen! chairman Wouter Van Besien.

When the French-speaking parties not only refused to meet the ultimatum but appeared to be rowing back on a number of issues already agreed upon, De Wever put an end to talks. One of the issues was how much and what responsibilities were to be devolved from the federal government to the regions. At the time the principles were agreed, it was estimated that about €15 billion of financial responsibility had been handed over to the regions. In the last few days, De Wever claimed, half of that benefit had leaked away.

"The story is over," he told a press conference called on Monday. "Let's just finally admit it honestly. We can't roll around in the mud any longer, we have no time to lose. If people want to put the blame on me, let them. I won't be part of that childish game."

As Flanders Today went to press, other major figures were preparing their reactions. De Wever already had an idea of what should happen next. In a triumph of mixed metaphors, he said: "We have to wipe the board completely clean, set the counter at zero and try to start up a new story. We have to do it with open visor and without taboos, either over the content or over the formula." He gave his backing to the current caretaker government and promised them his active cooperation. "The country has to be reformed," he said, "but it also has to be governed."

To that end, he said, N-VA would provide a "sympathetic ear" to important cases where the government had to act and where a vote was needed in parliament. The government should in the meantime investigate whether it was possible to do this in a slimmed-down manner to speed up decisions.

In one case that arose last week, Yves Leterme's government proved itself quick to react. The issue involved the jobs of some 3,000 people that were under threat because the non-profit organisations that employed them could not renew their contracts, as subsidies run out at the end of the year. The day after the news appeared in De Morgen newspaper, Leterme announced that the contracts had been prolonged by six months.

Whether that extension will be long enough to see a new government in power is now anything but certain. N-VA would not, De Wever promised, fall ill with the "old Belgian sickness" of settling for an agreement for agreement's sake. "For us that is not an option and never will be," he said.

REACTIONS
Caroline Gennez, chair of the Flemish socialist SP.A, said her party was ready to talk and called on the N-VA as well as her French-speaking counterparts (PS) to "stop playing strategy games".

Lijst Dedecker chairman Lode Vereeck welcomed De Wever's decision to abandon talks, which he said had been going in the wrong direction from the outset.

Groen! party chair Wouter Van Besien said his party would examine carefully any invitation to take part in further talks. It was now up to De Wever as leader of the largest party to take the initiative, Van Besien said.

The three French-speaking parties at the negotiating table - PS, Ecolo and CDH - resolved to meet on Monday afternoon before giving any public reaction to De Wever's decision.

Likewise, the CD&V of Yves Leterme and Flemish minister-president Kris Peeters chose to meet to consider its options before reacting publically. In a brief statement, chairman Wouter Beke said his party would continue talks in an "open and constructive manner".

On the financial markets, meanwhile, the interest on Belgian bonds increased by five points to 3.12%, a sign that the market is unhappy with the announcement, which signals the continuing inability of the caretaker government to take the measures needed to tackle the budget deficit. The figure is effectively the rate charged by the market to lend money to Belgium. Back in June there was some controversy when it was claimed that the markets feared the arrival of De Wever's party in power. Now they appear to be reacting in the same way to his failure to take power.