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10/3/09

FT.com: - Romanian coalition suffers collapse = Thomas Escritt and Stefan Wagstyl

For the complete report from the FT.com click on this link

Romanian coalition suffers collapse = Thomas Escritt and Stefan Wagstyl

Romania's ruling coalition collapsed on Wednesday, leaving the recession- struck country with its second minority government in less than a year at a time of deepening economic crisis. After only 10 months in office, ministers from the leftwing Social Democratic Party walked out on their centrist Democrat Liberal partners after the sacking of Dan Nica, the Social Democrat interior minister, for failing to keep public order. The Social Democrats claimed the dismissal was a political ploy, as it comes a month before presidential elections in which Traian Basescu, the Democrat Liberal-backed incumbent, will fight to retain office.

Yesterday's events could complicate Bucharest's relations with the International Monetary Fund as it supervises an economic support plan, and revive concerns about political risk in the region during the global recession.

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