Romanian lawmakers endorse new government seen differently by investors and the electorate

The fragile self-declared “pro-EU” ruling coalition in Romania, formed by the same ‘grand coalition’ of Social Democrats (PSD) and Liberals (PNL) significantly less numerous in Parliament but now enjoying the support of the Hungarian party UDMR, was endorsed by the MPs with a majority of 240 votes – seven more than needed - on December 23.

The former ‘grand coalition’ thus survived the general elections, and the benefit is that the rising far-right parties failed to gain a blocking majority. On the downside, it is unlikely that the disappointing performance of the Social Democrats and Liberals in the past years, which resulted in fiscal slippage, the rising power of the budgetary sector, and a dysfunctional judiciary, will improve overnight as long as no real reforms take place within the two parties.

Former prime minister Marcel Ciolacu and a large number of ministers keep their positions. Others are rather controversial, such as the new minister of justice (Social Democrat Radu Marinescu), who has an even more contentious background than his predecessor, Alina Gorghiu. Marian Neacsu, an influential member of PSD during the leadership of Liviu Dragnea, has returned as deputy prime minister.

The nomination of Crin Antonescu, former leader of the Liberal Party and an advocate of the first coalition with the Social Democrats, also points to the backward orientation of the ruling coalition and increased interference of the intelligence services in the formation of political structures, according to political sciences professor Alina Mungiu Pippidi, quoted by Hotnews.ro.

While investors see the vote in Parliament as a step towards stability, the electorate may feel their vote against the former ruling parties didn’t matter, resulting in further radicalization ahead of the presidential elections.

Although there is a general consensus over the reduced power of the two main ruling parties (PSD and PNL), they still have a combined share of 43% of the total number of deputies and senators. The junior party UDMR, which holds a more influential position compared to other coalitions it was part of, helps the ruling coalition achieve a majority in each of the two chambers.

The MPs of ethnic minorities also supported the government headed by Social Democrat leader Marcel Ciolacu, while the reformist Save Romania Union (USR) and the nationalist parties AUR, SOS Romania, and POT voted against it.