Romania’s ruling coalition is set to push through a controversial package of public sector spending cuts and tax hikes in Parliament on Monday, even as it braces for multiple no-confidence motions, adding to the country’s political uncertainty.
The government is facing public sector strikes and strong opposition to spending cuts as it tries to lower the European Union’s highest budget deficit and keep Romania on the last rung of investment grade.
Legal Battles
Fast-tracking their approval in parliament means the measures can be approved without lengthy debate, though the opposition can file no-confidence motions within three days.
The government looks likely to survive the no-confidence votes, which are expected to take place later this week, but the laws can still be challenged in the Constitutional Court.
Legislative Packages
The cabinet approved a first package of measures, consisting mainly of tax hikes, shortly after it took power in late June, but the four parties in the ruling coalition have struggled to agree on cuts to bloated state spending.
Last Friday it agreed five legislative packages with a budget impact of roughly 10.6 billion lei ($2.46 billion), gradually raising the retirement age for judges and prosecutors, cutting jobs and limiting remuneration for state firms and financial, telecoms and energy regulators, as well as introducing some tax hikes from 2026.
The government, which controls just under 70% of parliament, has chosen to split the measures into five packages to avoid having all of them struck down by the top court in one go.
‘Legislative Terrorism’
The second largest party in parliament, the far-right Alliance for Uniting Romanians (AUR), said it would file four no-confidence motions, calling the government’s decision to fast-track the cuts “legislative terrorism”.
Even if the ruling coalition survives the motions, as expected, it has been strained by failure to agree on a sixth package of cuts to local administration jobs.
Both the leftist Social Democrats and centre-right Liberals, the two largest parties in the cabinet, have repeatedly said the coalition’s future is uncertain.
Centrist President Nicusor Dan has also criticised the way in which the government plans to raise the retirement age for the judiciary to the standard 65 from 49 currently, raising doubts over his continued support for Liberal Prime Minister Ilie Bolojan. The judiciary is staging an indefinite strike.
($1 = 4.3137 lei)
(With inputs from Reuters)
