Romanian Parliament Allows Caretaker Govt To Submit 2010 State Budget

Romania needs to approve a state budget for 2010 to comply with the provisions of its agreement with the International Monetary Fund. The Parliament’s resolution allows an exception to article 26 section 3 of Law 90/2001, regarding the running of the Government, giving it the power to draft the budget.

The Government led by Prime Minister Emil Boc received a vote of no-confidence in Parliament in October and it now has limited powers, which means it doesn’t have the right to draft the budget. The country’s new proposed Cabinet, with Lucian Croitoru as prime minister, was rejected Wednesday by Parliament.

Romania’s political instability, atop a deepening recession and social unrest, continues to raise concerns on whether the country will be able to meet the requirements of an IMF-led bailout loan of nearly EUR20 billion. The European Commission and the World Bank are not likely to approve further loan disbursements to Romania unless the country adopts its pledged structural reforms, particularly in the public wage and pension sectors, people with the matter told MEDIAFAX Tuesday.

An IMF mission is in Romania until November 9 for a second review of the loan agreement it is overseeing.