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Belgian PM proposes resignation Belgian PM proposes resignation
(about 3 hours later)
Belgium's Prime Minister Yves Leterme has proposed that his government resigns amid a row over the break-up of the stricken Fortis bank.Belgium's Prime Minister Yves Leterme has proposed that his government resigns amid a row over the break-up of the stricken Fortis bank.
The cabinet has held an emergency session and backed Mr Leterme's move.The cabinet has held an emergency session and backed Mr Leterme's move.
He must now present the proposal to King Albert II, but correspondents say the monarch may not accept it.He must now present the proposal to King Albert II, but correspondents say the monarch may not accept it.
Earlier, Justice Minister Jo Vandeurzen quit after Belgium's highest court said the government had tried to influence a court ruling on the Fortis case.Earlier, Justice Minister Jo Vandeurzen quit after Belgium's highest court said the government had tried to influence a court ruling on the Fortis case.
Judges last week blocked the government's bail-out and sale of its stake in Fortis to French bank BNP.Judges last week blocked the government's bail-out and sale of its stake in Fortis to French bank BNP.
They said shareholders in the company must be allowed a say in the deal. They said shareholders in the company had to be allowed a say in the deal.
Decision awaited
Mr Leterme's spokesman, Peter Poulussen, confirmed the decision had been approved by the cabinet.Mr Leterme's spokesman, Peter Poulussen, confirmed the decision had been approved by the cabinet.
"The cabinet has decided to tender the resignation of the entire government to the king," Mr Poulussen said. "The cabinet has decided to tender the resignation of the entire government to the king," Mr Poulussen said.The government is embroiled in a row over the sale of its stake in Fortis
Under Belgium's constitution the king must decide whether to accept the resignation.Under Belgium's constitution the king must decide whether to accept the resignation.
Mr Leterme previously tendered his resignation in July after failing to break a political deadlock among the country's linguistic groups. The king refused to accept the resignation at that time. Mr Leterme only took office in March, nine months after a general election had resulted in political deadlock founded in tensions between Flemish and French-speaking groups.
He offered to resign in June after he failed to push through plans to devolve more power to the regions, but the king rejected his resignation.
Mr Poulussen declined to say when the prime minister would go to the king this time around.Mr Poulussen declined to say when the prime minister would go to the king this time around.
Court reportCourt report
In its judgement earlier on Friday, Belgium's Supreme Court concluded that there were "undoubtedly significant indications" pointing in the direction of interference with the judiciary over the Fortis case.In its judgement earlier on Friday, Belgium's Supreme Court concluded that there were "undoubtedly significant indications" pointing in the direction of interference with the judiciary over the Fortis case.
The Brussels appeal court last week ruled in favour of 2,200 shareholders who wanted more say in the future of Fortis.The Brussels appeal court last week ruled in favour of 2,200 shareholders who wanted more say in the future of Fortis.
That ruling froze the sale of most of Fortis to France's BNP Paribas, which was supposed to be finalised this week. That ruling froze the sale of most of Fortis to France's BNP Paribas, which was supposed to have been finalised this week.
Shareholders were left with practically worthless stakes after the governments of Belgium, the Netherlands and Luxembourg stepped in to rescue Fortis. Shareholders had been left with practically worthless stakes after the governments of Belgium, the Netherlands and Luxembourg stepped in to rescue Fortis.
Fortis has been among the banks worst-hit by the credit crunch, which left it desperately short of cash and needing help from the three governments.Fortis has been among the banks worst-hit by the credit crunch, which left it desperately short of cash and needing help from the three governments.