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Reuters: Stolojan's withdrawal fuels suspicions on political instability

de Radu Rizea     HotNews.ro
Marţi, 16 decembrie 2008, 13:24 English | Politics

The sudden withdrawal of the nominated to the PM office, Theodor Stolojan, is another fact supporting rumors about political instability in Romania. Democrat-Liberal (PDL) leader Emil Boc, nominated to replace Stolojan in forming a centrist - leftist government, will have to deal with the differences between the political views of his own party and those of the Social Democrats (PSD). Boc will also have to decide upon drastic expenses cuts, in order to make sure that Romania will rise above the economic crisis.

Economy analysts say that any new government must move quickly, in order to convince financial market of their determination in fiscal discipline, thus reducing the risk for recession. Boc intends to put up the Government until December 22.

Specialists say that Boc has better management skills than Stolojan, despite lacking his economic expertise. Boc also  enjoys more influence among the politicians that will have to support his less popular decisions.

Financial markets remained cautious after Boc's nomination, but the national currency, RON, dropped to the lowest level during the past two months, given the concern on the future governmental policies.

Reuters also comments that Stolojan's withdrawal is a sign of a possible future political instability. The economic reforms may also influence the future anti-graft actions, PSD having a history of corruption scandals, the agency also notes.

The German media commonly described Stolojan's withdrawal as a "political prank", a sign of instability, claiming that Stolojan was a rather "balanced choice", while Boc is "a spokesman for president Basescu".
























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