Political parties in Belgium agreed on Friday to form a new government, the office of Belgian King Philippe said, ending almost eight months of complicated talks that followed the election victory of Flemish nationalist party N-VA.

The country’s tense negotiations hinged on taxing and social spending — and they highlight issues facing Europe, and Western democracies, as a whole.

Months of talks have resulted in a five-party coalition agreement to be led by the right-wing N-VA party's Bart De Wever. He is now set to become the country's first nationalist prime minister.

Political parties in Belgium on Friday agreed to form a broad government coalition, local broadcaster VRT News reported, ending almost eight months of complicated talks that followed the election victory of Flemish nationalist party N-VA.