Romania: The governing coalition disintegrates
Overview:
The right-left coalition in Romania has disintegrated. The left-leaning PSD has left the government after the dismissal of the PSD-appointed Interior Minister. Neither the PD-L nor the PSD showed any signs of being willing to compromise over the issue. This comes as mass demonstrations protest against harsh fiscal adjustment measures. Presidential elections (the first round of which is to be held on November 22) are now the key focus on the political scene. The presidency assumes extra prominence in Romania given that the two largest parties have an almost identical number of seats. Even if a vote of no confidence on October 13th is successful it may be unclear who will form the next government until after the new President is elected. Either way, implementation of policies under the IMF program is likely to deteriorate.