Belgian impasse spurs divorce talk but deal likely

By Philip Blenkinsop

BRUSSELS (Reuters) - Belgium's post-election stalemate has set tongues wagging about the country possibly breaking up, but it seems likely to end in a typical Belgian compromise paving the way for more power to the regions.

Aides to King Albert say the linguistically divided nation of 10 million has been in crisis since former Flemish Premier Yves Leterme, clear winner in the June election, acknowledged failure last month in his bid to form a centre-right government.

Bold promises from Leterme's Christian Democrats to wrest more power for prosperous Dutch-speaking Flanders have produced only squabbles with French-speaking parties who fear their poorer region will lose out in any further decentralisation.

Flemish separatists have argued the deadlock proves unified Belgium has run its course, while the media have speculated increasingly about a break-up of the 177-year-old country.

"Is there life after Belgium?" Flemish daily De Standaard asked on its front page on Saturday.

"It's easier said than done," was its conclusion on a potential divorce. Belgium is not about to break apart.

"You might think forming a government is difficult, but splitting Belgium would be 10 times harder," said Kris Deschouwer, political scientist at Brussels Free University.

How would Belgium divide up its large public debt that was 87 percent of gross domestic product in 2006? And what would happen to the capital, Brussels, seat of most European Union institutions and a separate bilingual region inside Flanders?