Romanian lawmakers back new centre-right government

Romanian lawmakers endorsed a new centre-right coalition government on Wednesday, giving Prime Minister Florin Citu a mandate to try to restore confidence in the economy and kick-start investment after years of political instability. After four rounds of elections in the last two years, analysts say the government must repair Romania's rundown transport, health, education and energy infrastructure, and undo problems caused by fiscal largesse and attempts to weaken the courts that have triggered mass street protests.

Romanian lawmakers endorsed a new centre-right coalition government on Wednesday, giving Prime Minister Florin Citu a mandate to try to restore confidence in the economy and kick-start investment after years of political instability.

After four rounds of elections in the last two years, analysts say the government must repair Romania's rundown transport, health, education and energy infrastructure, and undo problems caused by fiscal largesse and attempts to weaken the courts that have triggered mass street protests. "Let's go to work," Citu told lawmakers after the vote.

The 21-strong cabinet made up of Citu's Liberals, centre-right grouping USR-Plus and the ethnic Hungarian Party UDMR was backed by 260 votes, more than 30 votes above the required 228. However, their majority could fluctuate over time and become insufficient to push forward major reforms, analysts said.

The government must shore up public finances and convince ratings agencies it can keep its public debt under control or risk losing its investment grade status. Agencies have Romania on their lowest investment grade with negative outlooks.

Citu's government must also revive Romania's economy following the impact of the novel coronavirus. It has infected 604,251 people in the country and killed 14,766. Romania, which collects significantly less revenue than the EU average, aims to improve tax collection but keep its tax levels unchanged, the coalition's governing programme said.

The government plans to lower the consolidated deficit to 7% of gross domestic product next year from an estimated 9.1% in 2020. It expects the shortfall to return below the EU's 3% ceiling by 2024. The cabinet also aims to tap EU funds, promote public-private partnerships for energy, transport and health infrastructure and encourage bourse listings. It aims to reverse listing restrictions and unblock offshore gas projects in the Black Sea.

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