Belgian coalition talks collapse as negotiator resigns

BRUSSELS, Aug 23 (Reuters) Belgian Christian Democrat Yves Leterme resigned today from the role of coalition negotiator after a collapse of talks among potential coalition partners more than two months after general elections.

''This afternoon I had to realize that it is impossible to elaborate an ambitious governmental programme,'' Leterme said in statement.

It is now up to King Albert to decide whether to name a new coalition negotiator or appoint a mediator to find a middle ground between Dutch and French-speaking parties in the linguistically divided country of more than 10 million.

Leterme, head of the Flemish Christian Democrat party, scooped the popular vote during the elections, but the two sides of Belgium's divide came to blows over his plans to reform the state.

Some commentators say the political crisis is giving momentum to Flemish separatist parties, and if it endures, could even lead to a breakup of the country between French and Dutch-speaking regions.

As Leterme went to the king's residence to resign, Flemish separatist militants carried banners outside demanding independence for their region, which they argue grants too much aid to economically deprived French-speaking Wallonia.

''Now more than ever, independence for Flanders,'' a banner read.

''The king will have to take the initiative now ... but his room for manoeuvre is limited,'' said Pascal Delwit, a political professor at the Free University of Brussels, noting that such crises are not uncommon in Belgium's recent history.

''Belgium has already known major times of tension and crisis,'' Delwit said, adding that in 1987 it took the country six months to form a government.

Delwit played down the chances of a breakup of the country, saying that a majority Belgians were against.

Belgian news media speculated on Thursday that the king may now ask a French-speaking negotiator to form a government, such as Didier Reynders, a popular liberal finance minister in the outgoing government of Prime Minister Guy Verhofstadt.

REUTERS AK BST0130