Minority government in Romania approved

The Romanian parliament on Monday gave its approval for a minority government led by the liberal-conserative PNL party and its leader Ludovic Orban. The policies and scandals of the previous governmentwhich was dominated by the social democratic PSD for years triggered mass protests which eventually led to its downfall. What are the options for Orban, given that new elections will be held in 2020?

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Radio Europa Liberă (RO) /

Introduce reforms now or wait for the elections?

The new government will have to perform a balancing act, says Radio Europa Liberă:

“Every conservative government has so far failed due of a lack of internal stability. Each time this brought the [social democratic] PSD back to power in a stronger position. ... Now the PSD has much less time, just one year [until the regular parliamentary elections in 2020]. It will be difficult for Orban's government if it really wants to propose reforms. It will have an easier time if it confines itself to dealing only with the most urgent matters, without making a real difference. But not vis-à-vis the anti-PSD voters who have been active in the protests of the past three years to defend the rule of law; a previously abstract syntagma that has now acquired significance for the community.”

Moise.ro (RO) /

Trapped in the credit spiral

The new government won't have any alternative but to take out more loans because of its predecessor's costly social policies, writes economic journalist Moise Guran in his blog moise.ro:

“What all Romanian governments have been doing for the past 30 years is to create social dependency and not prosperity. Inevitably, the money has run out, and the new government is now condemned to take out new loans to pay for what the Social Democrats have already spent. And this is where the trap begins! To avoid it, the new government must borrow even more money, which it can invest in a bid to raise its budget revenues. So before new hospitals, schools or roads can be built, investments are needed to ensure a gradual increase in prosperity.”