Romanian PM-Designate Loses Confidence Vote In Parliament

The government needed 236 votes to be instated.

Croitoru, an economist, told lawmakers before the vote the country needs a stable government, with full powers to carry on with IMF-required reforms, adding a potential halt of the country’s agreement with the IMF would bear serious consequences for its external credibility, more so than if the deal had never been signed.

Besides a deepening recession and social unrest, Romania is faced with increased political instability after its government collapsed in a no-confidence vote mid-October, and is in desperate need of the coming two tranches of a EUR20 billion IMF-led loan package.

In the absence of a proper government, however, the loan disbursements may be delayed. An IMF mission is in Romania until November 9 for a second review of the loan agreement it is overseeing.

President Traian Basescu will have to designate a new prime minister, who will then have ten days to propose a new Cabinet. The country’s self-proclaimed parliamentary majority of social democrats, liberals, the Hungarian minority party an d other national minorities has said it continues to back Sibiu mayor Klaus Johannis for prime minister, but Basescu is reluctant to designate him.