By Philip Blenkinsop
Reuters UK
BRUSSELS (Reuters) - Belgium was left scrambling for political leadership for the third time in a year on Saturday after the government collapsed following its botched attempt to bail out troubled financial group Fortis.
Prime Minister Yves Leterme tendered his government's resignation on Friday after a damning report by the Supreme Court found signs of political meddling to sway a court ruling on the future of the bank, a victim of the credit crunch.
Belgium's King Albert, who under the constitution must decide whether to accept the resignation, held late-night talks with Leterme in the palace about the resignation offer on Friday but deferred any immediate decision.
"We'll have to look at how we assure stability in our country -- political stability we don't have at the moment," Finance Minister Didier Reynders said.
Leterme has been in power only for nine months as leader of a fragile, five-party coalition meant to ease a dispute between Belgium's linguistic groups that had reignited speculation the 178-year-old country could break up.
Opposition parties demanded fresh parliamentary elections, although analysts doubted the ruling parties in Leterme's coalition will want to test voters just as Belgium slips into recession, and with the Fortis debacle fresh in their minds....(Click for remainder).
