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Walloons hold up key EU pact with Canada Belgium Walloons block key EU Ceta trade deal with Canada
(35 minutes later)
Belgium cannot sign landmark EU trade treaty with Canada, PM Michel says, over regional Walloon objections Belgium cannot sign a key EU trade deal with Canada, Prime Minister Charles Michel says, because of objections from one of its regions, Wallonia.
This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version. His statement appeared to dash hopes the Ceta deal could be signed by EU leaders and Canada on Thursday.
If you want to receive Breaking News alerts via email, or on a smartphone or tablet via the BBC News App then details on how to do so are available on this help page. You can also follow @BBCBreaking on Twitter to get the latest alerts. "We are not in a position to sign Ceta," Mr Michel said after talks with regional leaders broke down.
It is the EU's most ambitious free trade deal to date but Belgium needs the regions' approval to sign it.
Mr Michel said he had told European Council President Donald Tusk that Belgium could not sign Ceta.
The European Commission had set Belgium a Monday deadline to make its decision on the deal agreed with Canada in 2014, after five years of negotiations.
Demonstrations
Wallonia, a staunchly socialist region of 3.6m people, wants stronger safeguards on labour, environmental and consumer standards.
Its fears echo those of anti-globalisation activists, who say Ceta and deals like it give too much power to multinationals - power even to intimidate governments.
There have also been big demonstrations in several EU countries against Ceta and the TTIP trade talks between the EU and the US.
On Sunday the European Commission presented a new clarification to Wallonia on the mechanism for settling disputes with investors.
The rules for trade arbitration are one of the thorniest issues in the deal.
But Belgium's RTBF news reported (in French) that the latest EU document did not satisfy the Walloon politicians.
What is Ceta?
Canada and the EU would eliminate 98% of tariffs under Ceta, which was negotiated over five years between 2009 and 2014.
Supporters say this would increase trade between them by 20%, and would especially help small businesses.
Critics say the deal threatens product standards and protects big business, allowing corporations to sue governments.
European Parliament briefing on Ceta
Is Ceta a good model for Brexit?