ING Bank’s economists consider there are over 50% chances that Romania will have a technocrat Government led by former European Commissioner for Agriculture Dacian Ciolos, which will lead the country until the 2016 general elections.

Such a Government should be supported both by the Social Democratic Party (PSD), which is part of the majority in the Parliament, as well as the National Liberal Party (PNL), the main opposition party. Such a Government could also calm down the protests in Romania.

“This solution seems friendly to the markets and should lead to structural reforms, probably supported by the International Monetary Fund, and to the investment acceleration, as the protesters in the streets have demanded,” ING analysts say, reports local Economica.net.

Such a Government would also avoid the populist and discretionary spending that a political Government would be tempted to make before elections.

If the political scene calms down, the central bank might consider further monetary policy interest rate cuts in the third quarter of next year, before the elections in December, according to ING.

editor@romania-insider.com