Romania’s largest party, the Social Democrats (PSD) on Thursday resigned from the pro-European coalition government of Prime Minister Ilie Bolojan, leaving a minority government and putting EU funds at risks.
The Social Democrats had called on Bolojan, a center-right Liberal, to resign over cuts state spending to rein in largest budget deficit in the European Union. The party which pulled iys seven ministers had endorsed all his measures to date but were apparently under pressure from interest groups.
The collapse of the four-party coalition formed last June heralds a period of political deadlock, threatening Romania’s credit rating which is already on the last rung of investment grade, as well as hiking borrowing costs and endangering 27 billion euros of EU money.
Bolojan has refused to quit and said he will will appoint interim ministers from cabinet members, who can legally hold the seats for 45 days lawmakers need to approve another government.
Bolojan will face a no-confidence motion likely next week which could topple his government if the opposition radical Alliance for Uniting Romanians supports the move. The party is currently leading all opinion polls.
“PSD is ready to form a new pro-European government and support a prime minister, either a politician or a technocrat, who is receptive to citizens’ problems and who is able to collaborate with the parties to ensure a parliamentary majority,” the party said in a statement.
Bolojan’s Liberal Party ruled out on Tuesday forming another coalition with the PSD which needs to be in government for a pro-European parliamentary majority.
Romania’s centrist President Nicusor Dan held talks on Wednesday all four parties in the coalition and ruled out bringing the radical AUR into government.
The current coalition has repeatedly clashed over budget cuts.
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Romania faces the extremists in government unless the president wakes up
