PM designate Lucian Croitoru on the economy

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Croitoru has 10 days to form a Cabinet and gain parliamentary majority. The current parliamentary majority, which includes the National Liberal Party (PNL), the Social Democratic Party (PSD), and the Democratic Union of Hungarians in Romania (UDMR), that had proposed Klaus Johannis, Mayor of Sibiu for the position of Prime Minister, indicated it will not accept Croitoru.

One of the arguments put forward by the opposition is that the Prime Minister designated by President Băsescu has no political support. But the President justified his nomination by referring to Croitoru’s extensive financial expertise.

According to articles written by Croitoru for Business Standard, he believes in reforming public expenses and is against raising taxes. The reforms on salaries, pensions, and the fiscal responsibility are both urgent and difficult, Croitoru said in one of his comments. “An increase in taxes is, first of all, wrong prior to the reform of public expenditure. Secondly, raising taxes would raise doubt on the initial justification for the IMF [International Monetary Fund] agreement, which was signed to provide more time for reform implementation,” Croitoru wrote. The official warns that state aid could negatively affect certain economic sectors. Thus, state aid could lead certain companies to cut back on their investments, the Prime Minister designate said. Furthermore, Croitoru supports a gradual monetary policy, and said that changes in the benchmark rate by the central bank must be gradual, especially in times of crisis.

PNL’s President Crin Antonescu said that Băsescu’s decision to appoint Croitoru as Prime Minister has only deepened the political crisis. “PNL will not vote for the president’s choice. This is the most outrageous attempt by Traian Băsescu to breach the spirit of the Constitution and the democratic regime,” Antonescu said. The PNL leader added that he would request a joint session of the chambers of Parliament to debate the new political situation and initiate proceedings to file a motion before the Constitutional Court. The PNL and UDMR initiated no-confidence vote against the government headed by Emil Boc was passed by Parliament on Tuesday, with 254 votes in favour and 176 against. This resulted in the fall of the government, although it will remain in office until another Cabinet takes over.

The President invited representatives of all parties to Cotroceni Palace on Tuesday evening for discussions on the formation of a new government.