King Albert had accepted the resignation of interim Prime Minister Guy Verhofstadt and appointed Leterme, the royal palace said in a statement. 

Leterme, former premier of Dutch-speaking Flanders, will head a five-party government after Dutch- and French-speaking parties ended a post-election squabbling.  Political analysts predict tension will resurface in the coming months over Flemish demands for more power to be given to the regions, which French-speaking parties oppose. The government has set a July deadline for a major reform of the state.

Verhofstadt, who has led the country since 1999, was re-appointed in December after Leterme twice failed to form a government after the  June parliamentary poll.