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Page last updated at 21:39 GMT, Monday, 22 December 2008

Belgian PM's resignation accepted

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The king of Belgium has accepted the resignation of Prime Minister Yves Leterme's government, the palace says.

King Albert II "accepted the resignation of the government and asked it to stay on in a caretaker capacity," a statement said.

The statement made no mention of who might replace Mr Leterme, but analysts say former PM Jean-Luc Dehaene is favourite for the caretaker role.

Mr Leterme offered to resign amid a row over the sale of troubled bank Fortis.

Dominic Hughes reports.

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