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Belgian king defers decision on resignation

Yves Leterme - Offered resignation to King Albert
Yves Leterme - Offered resignation to King Albert

King Albert II of Belgium has deferred a decision on whether to accept the government's resignation and launched consultations on how best to proceed.

Earlier the Belgian government collapsed after a top court found signs that it had sought to sway a legal ruling on the future of stricken bank Fortis.

Under the constitution, King Albert must decide whether to accept the resignation.

'(Belgian Prime Minister Yves) Leterme put the (resignation) proposal to the cabinet and they have agreed to it,' Mr Leterme's spokesman Peter Poulussen said.

Mr Leterme had tendered his resignation in July after failing to break a political deadlock among the country's linguistic groups, but the king refused it.

Mr Leterme’s spokesman declined to say when the prime minister would go to the king this time.

Mr Leterme has been under pressure to quit over accusations that his office had sought to influence an appeal court ruling that last week froze the break-up of financial group Fortis.

Earlier, a report by Belgium's Supreme Court did not specifically target Mr Leterme but concluded: 'All the above (in the report) of course does not offer ... legal proof of an attempt to interfere with the judiciary, but there are undoubtedly significant indications which point in that direction.'

Mr Leterme has denied influencing the appeal court, although he acknowledged that one of his officials contacted the husband of one of the judges several times.

Fortis was carved up by the Dutch, Belgian and Luxembourg governments with France's BNP Paribas buying the Belgian operations after an €11.2bn cash injection failed to calm investor concerns.

Shareholders launched legal action, and the court victory has thrown the government's bail-out plans into disarray.

Mr Leterme came to power in March after nine months of deadlock over the extent that powers should be devolved to Belgium's regions - a key demand for Dutch-speaking Flemish parties.