Brussels, Nov 6 (IANS) Belgium's King Philippe rejected Prime Minister Bart De Wever's resignation on Friday and asked him to immediately resume budget negotiations, the Royal Palace said in a statement, as the country's governing coalition struggles to reach an agreement on public finances.

The decision came after the King held talks with the leaders of the five governing coalition parties, all of whom reaffirmed their determination to reach an agreement on a sound budget plan for the next three years, Xinhua News Agency reported.

The five party leaders also formally committed to making concessions to reach an agreement within the government, according to the statement.

The King emphasised the importance of striking a balance between maintaining social cohesion and promoting economic growth, with each party leader pledging to prioritise compromise and a sense of responsibility.

Based on these assurances, the king rejected De Wever's resignation and called for the immediate resumption of budget negotiations. De Wever is scheduled to report back to the King on Nov. 16.

De Wever submitted his resignation on Monday after the five-party coalition failed to reach a budget agreement. The king withheld his decision and subsequently held consultations with coalition party leaders.

The coalition has been seeking an agreement on 10 billion euros (about 11.17 billion US dollars) in spending cuts and tax increases to shore up public finances, but remains divided over the balance between the two.

De Wever's Flemish nationalist N-VA and the liberal MR favour greater spending restraint, including in healthcare, while their socialist and centrist coalition partners want a larger share of the budget adjustment to come from taxes on wealth.

Belgium's budget deficit amounted to 5.2 per cent of GDP in 2025, while government debt stood at 108.1 per cent of GDP at year-end, according to Eurostat. Both ratios were well above the EU's reference values of 3 per cent and 60 per cent, respectively.