Belgian PM offers to resign

The Belgian Prime Minister, Jean-Luc Dehaene, offered to resign yesterday after his government failed to agree on an austerity package, Reuter reports from Brussels. The royal palace said King Baudouin was considering whether to accept the government's resignation.

Senior Belgian ministers had been locked in negotiations over additional savings and revenue measures totalling 110bn francs ( pounds 2.19bn) to meet Belgium's budget targets for EC economic and monetary union.