IHT: Government talks continue in Belgium; Central Bank chief warns about financial outlook
Government talks continue in Belgium; Central Bank chief warns about financial outlook
Would-be premier Yves Leterme soldiered on Sunday trying to form a government amid warnings from the central bank chief that the 168-day political stalemate was jeopardizing the country's financial outlook. In a rare interview in the weekend edition of the Flemish daily De Morgen, Central Bank Gov. Guy Quaden said projected budget surpluses totaling €2.5 billion (US$3.7 billion) in 2007 and 2008 may not be realized due to the deadlock between Dutch- and French-speaking parties in the government talks.
He said last year's budget was in balance and that the bank forecast a surplus of 0.3 percent of gross domestic product for this year, and 0.2 percent for next year.
