Guy Verhofstadt - Verhofstadt I

Verhofstadt I

Partly because of a food scandal that broke out just before the 1999 elections, the VLD became the largest party in the country, obtaining over 22% of the vote in Flanders. He quickly formed a coalition with the socialist and the green party in Flanders, and with the French speaking counterparts of these parties (a symmetric coalition) in Brussels and Wallonia. He was appointed Prime Minister on July 12, 1999, the first liberal to hold that office since 1938. It was the first Belgian government without a Christian Democratic party since 1958, and the first one which included the green parties.

Verhofstadt was awarded the Vision for Europe Award in 2002 for his work toward a more unified Europe. The economic situation gave him leeway in raising the lowest social alimonies and lowering taxation. After 2001, the economic situation worsened. The 'Aging Fund' or 'Silver Fund' was set up, in order to ensure the maintenance of pensions until 2030. But despite his efforts to boost the economy while attempting to maintain the social benefits system, unemployment rose, after previously falling during the second Dehaene cabinet.

Much to the disapproval of his coalition partners, Verhofstadt and his VLD opposed granting the right to vote to non-EU residents. Instead, they proposed and were able to liberalize procedure for obtaining Belgian citizenship.

During the prelude to the Iraq crisis of 2003, Belgium joined France, Germany and Russia in their opposition to the invasion.