After the May 19 referendum results, the Romanian government finds itself in a difficult position, given the relationship between president Traian Basescu and Prime Minister Calin Popescu Tariceanu.
In order to solve the situation, there are three choices: Tariceanu's resignation, early elections or continuous blocking until the 2008 elections, a Stratfor analysis shows.
The Government is currently under pressure coming from all sides, including the European Union.
Social Democrats who have a bad reputation in Romania (according to Stratfor) have the power to decide which way Romania will take. The European Union also has its instruments to put pressure on the Romanian political class.
EU is in favor of early elections, the document reads, and may penalize Romania in case it finds a lack of progress during the six months of political crisis.
PM Tariceanu already announced he won't resign, but things may change due to the increasing pressure in his own party.
A new prime minister may be named only in a Democrat - Social Democrat alliance, the analysis indicates.