Mr Leterme will present his government to King Albert II at the royal palace on Thursday.

BBC: NEWS | Europe | Nine-month crisis over in Belgium

Mr Leterme's Flemish party won elections in June 2007 but was unable to reach agreement on a coalition.

BBC: NEWS | Europe | Nine-month crisis over in Belgium

Mr Leterme informed King Albert of his resignation - which was accepted.

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Yves Leterme's initial efforts to form a coalition had foundered because he failed to persuade the French-speaking parties to accept a devolution of power to the regions.

BBC: NEWS | Europe | Nine-month crisis over in Belgium

For a record 535-plus days since an election in June 2010, the country has had a caretaker government under Yves Leterme (who is leaving to join the OECD).

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Mr Leterme was nominated to form a government after his party came ahead in the poll, winning 30 seats in the 150-seat lower house of parliament, ending eight years in opposition.

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On Saturday, Mr Leterme, whose party narrowly won the election, gave up his second attempt to form a coalition, amid recriminations from French-speakers that his demands for greater devolution risked splitting the country.

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During his first stop in Brussels, the Vice President met with NATO Secretary General Anders Fogh Rasmussen, European Parliament President Jerzy Buzek, leaders of the European Parliament, and Belgian Prime Minister Yves Leterme.

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Mr Leterme and many MEPs referred to the deep constitutional crisis that Belgium is currently going through - which saw the prime minister's party suffering severe losses in the country's recent general election.

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