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.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.