The consequences of the political crisis

24th December 2008, Comments 0 comments

Some of the knock-on effects of the collapse of the current government...

The resignation of the federal government is bad news for Belgian savers with the Kaupthing Bank. Kaupting Bank savers have had their accounts frozen since the bank ran into difficulty as a result of the financial crisis. The talks between Belgium’s language communities on devolution will also be postponed. However, the resigning Interior Minister Patrick Dewael (Flemish liberal) has said that the investigation into Police Chief Fernand Koekelberg can continue as planned.

On Friday it appeared that a solution had finally been found for the Luxembourg branch of the Icelandic Bank Kaupthing.

Thousands of Belgians have savings accounts with Kaupthing Luxembourg.

After months of uncertainty, an agreement had been reached on a takeover of the Kaupthing Luxembourg by the Libyan Investment Authority.

However, the agreement needed the endorsement of Belgium's federal government. The resignation of the government has made this impossible.

Around 20,000 Belgian savers’ accounts will remain frozen.

Devolution talks postponed

The planned devolution talks between representatives of Belgium’s language communities have been postponed.

The talks should have resumed today, but have been put off due to the current political crisis.

It is not yet clear when the talks will resume.

“Disciplinary procedure will continue"

The resigning Interior Minister Patrick Dewael (Flemish liberal, photo) has said that the disciplinary procedure against the Police Chief Fernard Koekelberg will continue.

According to Mr Dewael, the remaining witness statements in the investigation into Mr Koekelberg will still be taken.

The daily Het Laatste Nieuws had reported that the investigation into the appointment of Mr Koekelberg’s secretaries to top jobs within the Federal Police Service has been suspended.

Mr Koekelberg’s solicitor Marc Uyttendale told the paper that "It’s self-evident that a minister that has tendered his resignation should not be able to take a decision regarding the case.”


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