The chances of the formation of a Belgian government moved further off and the prospect of fresh elections grew, as a mediator tasked with building consensus between different linguistic groups stepped down.
Flemish Social Democrat Johan Vande Lanotte had been appointed to look for common ground between seven parties from Dutch-speaking Flanders and French-speaking Wallonia after direct talks to form a government failed in October 2010.
But the two largest Flemish parties last night rejected his proposal.
Belgium has been governed by an interim cabinet for more than 200 days, fuelling concerns in the financial markets over its ability to deal with its large public debt.
Analysts now believe that elections are a distinct possibility in order to try to break the deadlock.
