BELGIAN COALITION FORMATION -- LETERME EXPECTS A

UNCLAS BRUSSELS 002041 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PINR BE SUBJECT: BELGIAN COALITION FORMATION -- LETERME EXPECTS A CALL FROM THE KING, WILL SOON RESIGN REGIONAL POST TO CONCENTRATE ON FEDERAL LEVEL ¶1. (U) Summary: During a June 20 meeting with Ambassador Fox, Flemish Minister President Leterme said he planned to put together a four-party Christian Democrat/Liberal coalition if, as expected, King Albert asked him to form the next federal cabinet. Leterme intends to reach out to the opposition for support of constitutional changes shifting further powers from the federal level; the government formation process is likely to continue into late August. Promoting economic growth will be a major focus of Leterme's energy, particularly in the depressed rustbelt sections of French-speaking Wallonia -- bridging the "economic divide" will, he argued, do more to ease relations across the language border than anything else. End summary ¶2. (U) On June 20, Ambassador Fox met with Yves Leterme, Minister-President of Belgium's Flemish region, and, thanks to a spectacular success in the June 10 federal elections, the man who will have first crack at becoming Belgium's next prime minister. Leterme welcomed the Ambassador to Belgium, asked about the company the ambassador founded, and invited him to accompany him on a visit to Ypres, Leterme's hometown. The Ambassador urged Leterme to visit Washington, where he would work to arrange appropriate meetings. ¶3. (U) Leterme left no doubt that he expected King Albert II to ask him to form a government. Shortly before the meeting began, Leterme explained, he put the finishing touches on plans to announce his resignation from the Minister-President's post and devote himself exclusively to federal politicking. The resignation will occur on June 26, two days before the next parliament sits for the first time. ¶4. (U) Asked about the cabinet formation process, Leterme immediately made clear that he has no plans to work with the socialists. It will be "a four party coalition," he said, "involving the Christian Democrats and the Liberals." Such a grouping would provide him with a majority of 81 seats in the 150 member House of Representatives. To acquire the additional nineteen seats required to form a two-thirds super majority (something required for passing constitutional reforms),Leterme outlined plans to seek votes from the opposition parties, but not to offer them places in a coalition. He has given thought to asking the two Green parties to join a coalition, but has yet to reach any firm conclusion. ¶5. (U) Leterme professed himself determined to proceed with constitutional reforms, i.e., devolving further powers to the regions, despite the strong opposition of the francophone parties. As a result, there is every chance that the government formation talks could take a long time to bear fruit. He will grant a brief early August vacation to the pols who will be fashioning a coalition, but does not expect the process to be finished before the end of August. ¶6. (U) On the issue of the linguistic divide, Leterme was determined to dispel his image as a Flemish hardliner. He described hard economic times in the French-speaking region as the most visible source of linguistic friction in Belgium; he intends to devote considerable energy to helping the francophone areas revive their economy. The long-term benefits of such a revival would help the broader Belgian community, he noted, and assist with the process of building links between both language groups. Fox .