“Who makes up the budget is in itself of no importance,” Leterme told De Standaard at the weekend. “But by the end of August…we have to be able to show we are working on it in a serious manner. And we can only demonstrate that credibly to the outside world if we can show who is doing the work, and what methods they are using to do it. We can’t allow ourselves at that moment to wallow in uncertainty. ’We’ll see how it goes’ doesn’t inspire confidence, and that’s what this is all about.”

Leterme was responding to a week of bad news on the national, European and international financial scene. First, the Bel-20 stock market index dropped to under 2,300 points for the first time since 2009 and saw €6.7 billion wiped off the value of shares in a single day. Dexia Bank, in trouble because of the large amount of junk credit it still holds, lost more than €4 billion in the second quarter of this year alone, which included the write-off of junk credit and a sum destined to support the Greek economy. In the same period last year, the bank made a profit of €248 million. At its current share price, the bank is worth €3.2 billion – less than the value of its losses last quarter.

Then it was revealed that the UK’s financial regulator, the Financial Services Authority, had asked British banks to give details of their exposure to Belgian government debt, which was read as a sign that the FSA is considering Belgium as a possible next member of the group of toppling economies that already includes Portugal, Ireland and Greece. Belgium’s federal debt stood at €351 billion at the end of July.

To make matters worse, the socalled “spread” – the difference between the interest rate for Belgian debt and the standard reference German rate – extended beyond 200 points, effectively making Belgium less credit-worthy. The government’s economic planning office blamed the increase on Germany’s decision to lower interest rates and argued the larger spread was a Europewide problem. The resulting rate of 4.4-4.5% on Belgian paper is perfectly acceptable under current government plans, the agency’s Bart De Ketelbutter said. Problems would only arise if the rate jumped to around 7%, “and for Belgium that’s still a long way off”.

Finally, Standard & Poor’s, one of the three main international ratings agencies, last week lowered the rating on US debt from AAA, the highest rating available, which it has always held, to AA+, one notch lower. The move sent a shock wave through the markets worldwide.

As Flanders Today went to press, it was announced that the two houses of parliament would reconvene on 5 September. Meanwhile, the demand rekindled the debate about politicians taking the summer off. “A lost year leaves a sour taste, and the march of folly is still not over,” tweeted liberal MP Gwendolyn Rutten: “How can we sleep while our beds are burning?”