The Belgian coalition government has collapsed for the fifth time in three years. Prime Minister Yves Leterme offered his resignation after a liberal Flemish party quit the government.
It was the third time he had offered his resignation since July 2008.
The palace statement said that the king had asked Mr Leterme to stay on in a caretaker capacity.
The five-month-old coalition collapsed after the Open VLD party withdrew
over a long-running dispute on the rights of French speakers living in
Dutch-speaking areas near the capital Brussels.
The dispute concerns communities which have been trying to maintain
their Flemish identity by removing the special voting rights of
French-speakers.
Differences between the Dutch-speaking Flemish majority and
French-speaking Walloon minority often threaten Belgian governments, but
analysts have described the current crisis as particularly acute.
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