THE French and Belgian prime ministers met yesterday to finalise the break-up of Dexia, as the bank’s collapse added urgency to renewed talks among European leaders over how to counter the eurozone sovereign debt crisis.

BELGIUM has warned France that it was not willing to foot the whole bill for rescuing Dexia as the two states started talks to divide up the Franco-Belgian lender’s assets.

BELGIUM’S politicians were getting down to the business of trying to form a government last night, ending a world record-breaking spell in a political vacuum.

Belgium marked a year without a full government today.

A FORMER bishop’s televised admission that he sexually abused two of his nephews has caused an uproar in Belgium, with the prime minister, senior clergy and a prosecutor expressing shock at the way the ex-prelate made light of his offences.

Strong leadership by Ireland’s Taoiseach-elect will finally get the country working again, the leader of his European allies has said.

THE depths to which politicians can sink are on view at the heart of Europe — in Belgium.

Belgium’s lower house of parliament has banned burqa-type Islamic dress in public.

Belgium's lower house of parliament has banned burqa-type Islamic dress in public.

Belgium's King Albert II has today accepted the government's resignation after the coalition of the prime minister broke down last week.

Belgian Premier Yves Leterme’s government collapsed after negotiations broke down to resolve a long-simmering dispute between Dutch- and French-speaking politicians over a bilingual voting district.

BELGIUM plunged into political crisis yesterday as Prime Minister Yves Leterme threw in the towel after a key Flemish party quit his coalition government two months before the country assumes the EU chair.

Rescuers continued their search for victims today as experts began an investigation into the Belgian rush-hour train crash.

Two commuter trains collided head-on after one ran a stop light at rush-hour in a Brussels suburb, killing at least 12 people and injuring 55, a Belgian official said.

POLICE detained 14 suspected al-Qaida-linked extremists in raids in Brussels and eastern Belgium, including one militant who allegedly was plotting a suicide attack.

Asian stock markets plunged today as government bank bailouts in the US and Europe failed to alleviate fears of a global financial crisis that would depress world economic growth.

Germany became the latest country to act over the financial meltdown, with a new rescue plan for its second biggest commercial property lender and a 100% guarantee on private bank accounts.

French banking giant BNP Paribas will take a majority 75% share of troubled bank Fortis, Belgium’s prime minister said tonight.

Belgian prime minister Yves Leterme said he aims to find a new owner for troubled bank Fortis NV to restore confidence in the company before the opening of markets on Monday.

Dutch-Belgian bank and insurance giant Fortis NV has been given a €11.2bn lifeline to avert insolvency as part of a wider bailout plan agreed to by Belgium, the Netherlands and Luxembourg.

BELGIUM’S future hung in the balance last night as King Albert II considered whether to let his prime minister, Yves Leterme, resign over his failure to bridge the gulf between the country’s two linguistic communities.

Hundreds of farmers and lorry and taxi drivers blocked roads in Brussels today to push for help in coping with soaring fuel prices.

Fine Gael Leader Enda Kenny has welcomed the European People’s Party’s support for tax competition in Europe and its confirmation that setting tax rates should remain a matter for national governments.

FOR years now Belgians have been compromising with one another in an effort to keep the country together. They have five parliaments and a power sharing arrangement that would baffle the best mathematician.