Romanian Premier Ousted by His Own Party in Confidence Vote

by Dramelin 6:00 AM 0 comments

Romanian Prime Minister Sorin Grindeanu (C) looks at Liviu Dragnea (L), the president of the ruling Social Democrat party (PSD), as he prepares to address the Romanian Parliament during a no-confidence vote in Bucharest on June 21.
Romania’s governing coalition toppled its own prime minister after he clashed with the leader of the ruling party, paving the way for a new cabinet just six months after elections.
Premier Sorin Grindeanu, who rejected calls last week from his Social Democratic party to resign, lost a no-confidence motion 241 to 10 on Wednesday, according to parliamentary Speaker Calin Popescu-Tariceanu.
The result reaffirms the coalition’s majority after the feud between Grindeanu and party head Liviu Dragnea prompted dissatisfaction among some lawmakers.
President Klaus Iohannis can now hold talks with parties to name a replacement.
He’ll meet party officials on Monday, according to his spokeswoman.
“To deliver on the promises we made to the people during the campaign, we need a very good government and this is what we want to achieve,” Dragnea said before the vote.
“So we took the hard decision to try to make things right.
” The latest bout of political turmoil in Romania, which has had 13 prime ministers in 27 years, has sent the leu to its weakest in five years.
 Grindeanu fell out with Dragnea over government performance despite overseeing one of the European Union’s fastest-growing economies and surviving the largest protests since Communism in the nation of 20 million people.
“Naming a new premier could take a while,” Dan Bucsa, a London-based economist at UniCredit Bank AG, said in an email.
The leu rebounded after the vote from near a five-year low, gaining as much as 0.
3 percent against the euro to 4.
The yield on Romania’s 10-year leu-denominated bonds was little changed at 3.
Choosing Replacement Dragnea said Monday that he’s already considering several potential replacements for Grindeanu, to be discussed within the party after the ballot.
While he himself sought to become prime minister when the Social Democrats retook power in elections last year, he’s banned from office because of a criminal conviction.
“If installed, a new government is unlikely to last until the next regular parliamentary elections, scheduled for 2020,” Bucsa said.
“If the new executive manages to water down the anti-corruption laws, Mr.
Dragnea may try to become premier himself.
” Forming a new government could be tricky: Iohannis rejected Dragnea’s first pick for premier last year and vowed to keep his demands for an “upright” candidate, without criminal convictions for a new pick as well.
That could further delay Social Democrat election pledges, such as more tax cuts and higher salaries for public workers.
“Given his former affiliation with the opposition Liberal Party and his opposition to Dragnea’s judicial reform agenda, Iohannis could use this opportunity to obstruct the coalition,” said James Sawyer, a London-based economist at Eurasia Group.