Another failed presidential election
Overview:
Marian Lupu, candidate of the governing Alliance for European Integration (AEI), failed to win sufficient votes in parliament to become President of Moldova on Monday. His second failure to obtain the 61 (of 101) seats necessary to secure his position in office means that yet more parliamentary elections are now required. The Constitution dictates that these will be held next autumn. Hence, Moldova will have to limp along without a President and endure a very prolonged election campaign unless some compromise is reached on constitutional change. The Leu sold off sharply on the news. The economic impact of this political crisis is mitigated by the fact that foreign exchange reserves have been boosted by a loan from Russia and the possibility that the AEI government can secure an IMF program.