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New Belgian PM resolves crisis New Belgian cabinet ends crisis
(40 minutes later)
Yves Leterme has been appointed Belgium's new prime minister, ending nine months of political deadlock which threatened the unity of the country. A new Belgian government has been sworn in, ending months of political deadlock which threatened to split the country.
Mr Leterme, of the Flemish Christian Democrats, will head a coalition of Dutch- and French-speaking parties. Yves Leterme, of the Flemish Christian Democrats, will head a coalition of Dutch- and French-speaking parties.
His party had been seeking more devolution for the Dutch-speaking regions - a move strongly resisted by the French-speaking groups. Mr Leterme's party had been seeking more devolution for the Dutch-speaking regions - a move strongly resisted by the French-speaking groups.
But a deal with the Francophone parties was hammered out on Tuesday.But a deal with the Francophone parties was hammered out on Tuesday.
Mr Leterme was sworn in by King Albert II at the royal palace in Brussels. Political time bomb
His five-party coalition government replaces that of caretaker PM Guy Verhofstadt, whose resignation was accepted by the king. Mr Leterme and his five-party coalition government were officially sworn in by King Albert II at the royal palace in Brussels.
Mr Leterme and his new cabinet are due to be officially sworn in shortly and will then face a confidence vote in parliament. The coalition includes Mr Leterme's Flemish Christian Democrats from the north as well as Socialists from the French-speaking region of Wallonia in the south.
The new cabinet replaces that of caretaker PM Guy Verhofstadt, whose resignation was accepted by the king.
The new government agenda, which is still to be approved, leaves out references to constitutional reform, concentrating instead on immigration, tax-cuts and pension benefits.The new government agenda, which is still to be approved, leaves out references to constitutional reform, concentrating instead on immigration, tax-cuts and pension benefits.
Mr Leterme's party won elections in June 2007 but until Tuesday was unable to reach agreement on a coalition. That constitutional reform issue will be handled by a special panel of elder statesmen who will try to come up with a set of proposals.
But Mr Leterme's party has warned that if it does not get what it wants by mid-July it will walk out of the government.
So even as new ministers are being sworn in, a political time bomb is ticking, the BBC's Dominic Hughes in Brussels says.
Wallonia fears
Mr Leterme had promised his supporters even more devolved powers for regional governments in a country that is already Europe's most decentralised state.
In Wallonia - where unemployment is higher and the economy sluggish - there were fears this would leave their region worse off.
The Flemish Christian Democrats won elections in June 2007 but until Tuesday was unable to reach agreement on a coalition.
In December, thousands of trade unionists took to the streets in Brussels, complaining about the political stalemate and rising food and fuel prices.In December, thousands of trade unionists took to the streets in Brussels, complaining about the political stalemate and rising food and fuel prices.
The European Commission had warned that the political paralysis was beginning to affect Belgium's economy.The European Commission had warned that the political paralysis was beginning to affect Belgium's economy.


Are you in Belgium? What is your reaction to the formation of a new government? Do you welcome the end of the country's political deadlock? Send us your comments using the form below.Are you in Belgium? What is your reaction to the formation of a new government? Do you welcome the end of the country's political deadlock? Send us your comments using the form below.
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