New Belgian leader seeks solution

Mr Van Rompuy served as budget minister in the 1990s

The speaker of Belgium's parliament has accepted a request from King Albert to form a new government, in an effort to break the country's political deadlock.

Herman Van Rompuy, a Flemish Christian Democrat, is expected to maintain the existing five-party coalition of the outgoing prime minister, Yves Leterme.

Mr Leterme's government collapsed 10 days ago, amid allegations about political meddling in a bank bail-out.

The Fortis Bank scandal comes on top of political tensions along ethnic lines.

Rivalry between Belgium's Dutch- and French-speaking politicians created months of paralysis in government after last year's elections.

The global economic downturn has added to Belgium's woes.

The BBC's Oana Lungescu in Brussels says Mr Van Rompuy, 61, is widely seen as the ideal candidate to help Belgium cope with the economic malaise. But until now, he had insisted he did not want the top job.

A former budget minister, he brought down the public debt in the 1990s.

Mr Leterme only took office in March, nine months after a general election had resulted in political deadlock.

He tendered his resignation in June after he failed to push through plans to devolve more power to the regions, but the king rejected it.

Fortis has been one of the European banks hardest hit by the credit crunch, leaving it desperately short of cash. Earlier this month, the Brussels appeal court ruled in favour of the shareholders and froze the sale of most of Fortis to France's BNP Paribas.

Belgium's Supreme Court president said there were "undoubtedly significant indications" that members of the Belgian government had attempted to influence the outcome of the court case.