Government falls


The Democratic Liberal Party (PD-L) government led by Prime Minister Mihai Răzvan Ungureanu lost a confidence motion yesterday with the opposition garnering 235 votes, four more than was needed to bring down the government. Ungureanu had been prime minister since 9th February 2012.

Later in the day President Traian Basescu asked Victor Ponta of the opposition Social Democrat Party (PSD) to form a new government. The Social Democrats are currently in an alliance with the National Liberal Party (PNL) and Conservative Party (PC) called the Social-Liberal Union (USL).

In 2009 Romania called on the International Monetary Fund and the European Union for a €20 billion loan. The deal which was finally agreed led to spending cuts, a reduction of public sector wages, the freezing of pensions and a widespread privatisation programme. It was the privatisation programme which had so incensed the opposition that they called the no confidence motion yesterday.

Victor Ponti is reported as saying that he will honour the EU/IMF agreement. But with elections due in November this year the likelihood is that his government will enact a series of populist measures.

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