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.

Five Belgian parties struck a coalition deal on Friday to form a new government headed by Flemish conservative Bart De Wever, after over seven months of tortuous negotiations. The flamboyant Flemish politician had threatened to throw in the towel on the hunt for a coalition if no deal was reached Friday -- and the agreement was struck with just hours to go.

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.