Former Romanian prime minister to form new government

12/12/2008

President Traian Basescu nominated former Prime Minister Theodor Stolojan on Wednesday to form the new PDL-PSD coalition government.

By Paul Ciocoiu for Southeast European Times in Bucharest – 12/12/08

photo

Newly named Romanian Prime Minister Theodor Stolojan (left) holds a press conference at the Cotroceni Palace on Wednesday (December 10th). [Getty Images]

UPDATE...

The president's decision to nominate Theodor Stolojan as the head of the new government on Wednesday (December 10th) was not much of a surprise. The veteran politician previously served as Romania's prime minister and, before that, as finance minister in the turbulent years following the Ceausescu regime's collapse.

With Romania facing the impact of the global financial crisis as it enters a crucial period of reforms, the president has chosen someone known for his role in revamping the country's economy.

"We need a capable prime minister," Basescu said, adding that his nominee understands the background of the world's financial meltdown and has the authority needed to lead the country in hard times.

He threw cold water on rumours that the government would be short-lived. The prime minister will serve for four years, Basescu said.

Stolojan said his cabinet will have two "extremely urgent" missions -- handling the economic situation while also relaunching reforms in vital areas such as healthcare and education.

He said he hoped the new government would be sworn in by December 22nd.

The two party coalition will now start tight negotiations for the ministerial portfolios. The first crack in what seems to be a solid foundation occurred when the two couldn't agree on whether to accept the ethnic Magyars' party, UDMR, in the governing coalition. The Social Democratic Party (PSD) opposes the UDMR joining the coalition and says the topic is non-negotiable.

Former officials known for their role in the fight against corruption could return. They include Vasile Blaga, who served as interior minister from 2004 to 2007, and Monica Macovei, who was justice minister during the same period.

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PSD leader Mircea Geoana is expected to become the next president of the Senate and vice-president of the Country Defence Superior Council (CSAT).

Stolojan's campaign programme highlighted extending home equity loan payment periods for families in need, the controversial 50% teacher pay raise, accelerating public administration reform and decentralisation, relaunching the privatisation process and implementing tax exemptions for reinvested profit.

Stolojan, vice-president of the Liberal Democrat Party (PDL), withdrew from the presidential race four years ago to make room for Basescu, who went on to win the post. An economist by training, he held a senior position with the World Bank from 1992-1999, following his term in political office.

UPDATE...

This content was commissioned for SETimes.com.
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