Fortisgate scandal topples Belgian Government

[BelgianMadCow]

Source: The Guardian (UK)

Fortisgate, the growing scandal over the future of Belgian rump insurer Fortis, brought down the country's government soon after the justice minister resigned over suspected state meddling in legal decisions.

Jo Vandeurzen stood down after the court of cassation, Belgium's supreme court, said it had found "significant signs" but no hard evidence that the government had tried to influence judges ruling on the bail-out and sale of Fortis.

Within hours, prime minister Yves Leterme won a cabinet vote that the government should resign. King Albert now has to decide whether to accept the resignation.

Observers said the likely outcome would be a general election, an option few parties want amid deepening economic crisis.




Read more: http://www.guardian.co.uk/world/2008/dec/20/belgium-europe

---

So the economic crisis claims it's first government - mine.

I chose this article as it's headline is most accurate, but more background can be found in this Times article:
http://www.timesonline.co.uk/tol/news/world/europe/article5371351.ece

"Fortis was hastily dismantled in October as its shares nose-dived, with the Dutch state taking over its Dutch banking and insurance assets and the Belgian government taking over its Belgian banking business. In an attempt to secure the long-term viability of Fortis and the Belgian banking system, Mr Leterme orchestrated the sale of most of the group's Belgian assets to BNP Paribas."

BNP Paribas being FRENCH - the majority of Fortis was sold out to BNP at a knockdown price, you wouldn't say from this article.
Fortis, the world's second largest bank, was dismantled in two weekend sessions, where both the shareholder input and democratic input were not sought. This already disturbed me and many belgians. Then, the court rules in favour of freezing the deal, giving time for shareholders to ratify, modify or nullify the deal. I saw this as a victory over the backroom weekend dealings.

We have now learned that upon receiving news of the court's ruling (PRIOR to the ruling), the government sought to influence the outcome in a multitude of ways. Once again, outcry as this is a blatant violation of separation between executive and judicial branches.

And so the government fell, it's position untenable and the it's confidence lost.

So when the rights of shareholders were ignored, the court system worked. When the separation of powers was in dire straits, the court system worked. Sadly, the end result will likely be an increase in political power of both the extreme right (Vlaams Belang) and a person-centered rightwing liberal party (LDD).

regards
bmc
(socialist, flemish, green)

PS: this entire charade has to be seen in the light of divisions between the dutch and french speaking parts of Belgium - but that is actually to idiotic to try and explain. Just important to consider Leterme's government was held hostage by the Walloon (french-speaking) political parties.

[aquart]

1. I have NO idea what that PS means. None.

[BelgianMadCow]

3. *cough* well...I can hardly blame you...

Belgium has a flemish (= dutch + accent) speaking region in the north, with cities like Bruges, Ostend, Leuven and Antwerpen. This part is called Flanders and is the part with the (North Sea) seaside.
In the south, we have the french-speaking part called Wallonia, with cities like Namur, Liège and Charleroi and the forested hills called the Ardennes. To the east, we have a small german speaking part as well.
Our capital (and that of Europe together with Straatsburg) is Brussels, and is another separate region.
All of this in a country 1/300 the size of the US, with about 10 million citizens.

We all drink beer (AB Inbev but many many better), come try and you'll know why. Obviously, we have the best chocolate ever, invented the pralines and serve the best french :mad: fries in this galaxy.
Consequently, most of us have a lil fat at the edges, and we are all bon-vivants :-)

We have a constitutional monarchy, five (hm should go check) different parliaments and governments. All governments are coalition governments (mostly between socialist, christian democrats and liberals. Roughly 140 ministers... :crazy:

Historically, the government and the bourgeoisie were /still are french-speaking (our royal family speaks french for example). My dad threw cobblestones at the police in 1968 during a protest in (flemish) Leuven titled "Leuven Flemish". The southern part was further industrially developed with heavy industry based on coal and steel. Nowadays, the northern part is economically better off. Over some decades, these parts have become more and more autonomous, but we still have a federal government as well - similar to many other countries (Bundesländer in Germany, States in the US).

I wrote that PS because I think the flemish/walloon divisions have played a very important role in the current state of affairs in Belgium.

Hope this helps!
:hi:
bmc

[Quantess]

2. Are the Dutch speaking and French speaking groups any less divisive

now that there are more weighty issues (the economy) facing all of them?

[BelgianMadCow]

4. Everybody agrees there should be a ("new") government up and running asap

though some argue elections should be held immediately (mostly opposition parties).

I think the public opinion is getting more divisive - the solidarity between the regions is wearing thin, at least in the rhetoric.

The ongoing train wreck called The Economy may tone it down a little - but the divide subsists, and I wouldn't be surprised if the concept Belgium blew up either.

My own opinion: equal rights and more fiscal autonomy for the flemish, but all this fuss between politicians doesn't really correspond to important divisions between the PEOPLE. So much ado about nothing, as regions in Europe we should not be wasting energy on such follies. The french fries in Wallonia taste less good than the flemish, but still better than the others in this galaxy ;-)

[Quantess]

5. Interesting. As you have heard, we have our own exaggerated, unnecessary, divisiveness

that has shrunk in importance now that the economy is so dismal for both sides.

Dutch speaking Belgians make better "french fries"? Interesting.
But, who makes better Indian food?

[BelgianMadCow]

6. People have been screaming "act now, be very afraid, give us the money" here as well

just now on sunday debate program: a very influential economics professor, Paul de Grauwe, stating "if the deal with Paribas is frozen (as it is now), the net effect is the governmengt owns 100% of Fortis. The government is also backing all of the savings and the needed liquidity if need be. This is NOT the crisis sitiuation people make it out to be."


Sigh...reasonable discourse at last. Patriotacty governing is bad governing.

On the political front, the consultation round by the King is still ongoing. A continuation of the current coalition, with some new ministers (also prime) and a limited programme until a general election in June (when we already have regional and european elections scheduled) seems to be in the works.