Romania Risks Fanning Tensions With Controversial Cabinet Picks

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Unperturbed by mass street demonstrations and European Union warnings over judicial reform, Romania’s ruling party is doubling down on its controversial agenda.
The Social Democrats are finalizing their third government in a year after picking a new prime minister last week.
Already accused by protesters and officials in Brussels of trying to weaken the rule of law, party leader Liviu Dragnea is going a step further: he says people targeted in active corruption probes may join a new cabinet that will be revealed Friday.
The selections risk further inflaming tensions in the Black Sea nation of 20 million people, where 500,000 demonstrators successfully repelled Social Democrat efforts to ease punishments for corruption a year ago.
Also at stake is one of the continent’s fastest-growing economies, as well as ties with the EU, which is already at loggerheads with Poland and Hungary over democratic norms.
“This policy trajectory will inevitably fuel a new round of public protests,” Tiziana Papa, country risk analyst at BMI Research, a unit of Fitch Group, said in an e-mailed response to Bloomberg questions.
“We expect the new cabinet to focus on the speedy passage of widely criticized judicial reforms.
” Witch Hunt The new government will be led by Viorica Dancila after her predecessor became the second premier in six months to fall out with Dragnea, who can’t take the job himself because of a criminal conviction.
 He describes Romania’s six-year clampdown on graft as a witch hunt.
Ionut Misa may remain as finance minister, and Deputy Premier Paul Stanescu and ex-EU Funds Minister Rovana Plumb may also join the team.
Stanescu is facing an abuse-of-office probe; an investigation into Plumb was halted after parliament refused to lift her immunity.
They both deny wrongdoing.
Protesters have joined President Klaus Iohannis in criticizing the political turmoil.
But they’re also worried about the judicial overhaul -- which the Constitutional Court has partly halted -- and a criminal-code amendment that lawmakers will discuss next month.
Plans include: European Commission advice to dial back the legislative changes has gone unheeded.
It urged parliament this week “to rethink the course of action proposed, to open up the debate in line with the commission’s recommendations and to build a broad consensus on the way forward.
” Dancila, a Dragnea ally, openly supported the judiciary amendments that triggered last year’s protests.
But the passage of the latest proposals could at least be delayed by a presidential veto.
Iohannis has pledged to shield the rule of law, even if that risks suspension by a Social Democrat-controlled parliament.
In that instance, Senate Speaker Calin Popescu Tariceanu, another Dragnea associate, would take over the presidency temporarily.
The friction hasn’t dented the Social Democrats’ popularity, which stands at about 40 percent after a raft of tax cuts and wage increases for state workers.
But the protests, which attracted 100,000 people last Saturday, will maintain the pressure.
The leu is near an all-time low, with more demonstrations scheduled for this weekend.
“We’re determined to keep coming,” said Madalina Onea, a 35-year-old IT specialist protesting in Bucharest.
“We’ll be that constant pain in the neck every time they think about judicial changes that are only meant to help them escape prison.

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