Hopes of forming Romanian government dim as PM-designate revokes candidacy

ROMANIA’S PRIME minister-designate unexpectedly withdrew his candidacy yesterday and was replaced by Emil Boc, leader of the Liberal Democrats who won last month’s hard-fought general election.

The about-turn by Theodor Stolojan, a former prime minister and World Bank economist, stunned Romanians and cast doubt on a day-old deal between the Liberal Democrats (PDL) and the ex-communist Social Democrats (PSD) to form a coalition government at a time of mounting economic problems.

Analysts said that Mr Boc, while competent, might not be willing to enforce the fiscal discipline that Romania needs during an economic slowdown. They said Mr Stolojan’s determination to introduce austerity measures – and President Traian Basescu’s fears that they could damage him in 2010 presidential elections and his allies in next June’s European Parliament vote – may have prompted Mr Stolojan to step aside with the president’s blessing. The PSD also opposes sharp cuts in public spending.

For his part, Mr Stolojan (65) said only that he had required more guarantees from the leaders of the parties in the nascent coalition, and that he intended to “give hope to a new, younger generation of politicians” by withdrawing his candidacy.

Mr Basescu, who named deputy PLD leader Mr Stolojan as premier-designate last week, declined to reveal the details of their discussion yesterday.

“The only person who can explain why he withdrew is Mr Stolojan. I don’t want to explain the reasons he gave me. I am a bit sad,” said Mr Basescu, a pugnacious former ship’s captain and mayor of Bucharest, who replaced Mr Stolojan as his party’s candidate for president in 2004, and won the ensuing election. On that occasion, Mr Stolojan cited health reasons for his withdrawal.

Mr Boc (42), a lawyer who has studied in the US, Britain and Belgium, insisted that the change in prime minister-designate should not jeopardise the coalition deal.

“We have signed a partnership which does not include names or concrete persons, it is values and principles that we have taken on, and a set of measures to implement for Romania,” Mr Boc said of the coalition pact between his PDL and the PSD.

“The previously announced goals stay in place, namely the chance to give Romania a stable, efficient and highly effective government. The goal to have a ruling line-up in place by December 22nd stays in force.” However, Mircea Geoana, head of the PSD, said Mr Stolojan’s “surprising decision made us doubt a lot of things”, which would have to be addressed in talks with the PDL.

Romania’s stock exchange and currency have endured heavy losses in recent months.