May 24, 2013 | 09:35 AM (BD Time)
24 May, 2013 Friday
Political turmoil cripples Romania's economy
. AFP, Bucharest
The recovery in Romania's economy after two years of severe recession is now coming under threat, analysts warn, victim to the months-long political crisis that has engulfed the EU country.
Prime Minister Victor Ponta told the International Monetary Fund this past week that his centre-left government was determined to continue cost-cutting reforms and stick to plans to sell stakes in major energy companies that underpin recovery plans.
But analysts say that economic policy is "frozen", held hostage by the political war underway between the ruling Social- Liberal Union coalition and centre-right President Traian Basescu, targeted by an impeachment move launched six weeks ago.
Romanians who cast ballots in a controversial referendum last month voted overwhelmingly for Basescu's removal, but its validity is being disputed and there have been allegations judges have been pressured and intimidated.
"Stop the circus, try building something," urged recently the Ziarul Financiar daily, voicing the exasperation of the business community.
"The economy is clogged, money is no longer changing hands, the public administration is blocked, major decisions are delayed and no important contracts are signed," economic analyst Doru Lionachescu of Capital Partners consulting firm told AFP.
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