Pro-independence New Flemish Alliance (N-VA) reached an agreement with a Francophone party and two other Flemish parties to form a new government in Belgium which will be responsible to implement economic and social reforms.

The N-VA yesterday commited to postpone its demand for a new reform of the Belgian state over the next five years. In the medium term, the pro-independence party wants Belgium to turn into a confederation.

The N-VA is tomorrow holding a special meeting to discuss the four-party deal. If party delegates give their green light, the N-VA will join a government made up of Flemish liberals (Open VLD), Flemish Christian Democrats (CD & V), and Francophone Liberals (MR). Liberal Francophone Charles Michel is set to become the new Belgian Prime Minister. Michel will thus replace Socialist Francophone Elio Di Rupo, whose party will be in opposition for the first time in the last 26 years.

It took nearly five months for the parties to agree to form a government. In May 25th election, the N-VA won the largest number of seats: 33 of a total of 150 in Belgium's Chamber of Representatives. Francophone Socialists came second with 23 seats. The Flemish pro-independence party ruled out forming a government with the Socialists or supporting them to continue in the government, so it decided to seek an agreement with Francophone second largest party MR, which holds 20 seats.

The four-party agreement includes raising retirement age from 65 to 67 by 2030 and cutting Belgium's public debt (which in 2013 stood at 101% of GDP). In order to improve the economy, N-VA chairman Bart De Wever said the new government's top priorities will include boosting competitiveness of companies and purchasing power of citizens. Several taxes will be lowered in order to reach those goals.

(Image: Charles Michel / picture by UNDP.)