Fiscal reform, corruption in focus in Romania parliamentary election

Written by The Frontier Post

BUCHAREST (Reuters) – Romanians head to the polls on Sunday in a national ballot key to restoring the country’s reputation among investors, with the incumbent, reform-oriented centrists of Prime Minister Ludovic Orban holding a narrow lead over opposition Social Democrats.FILE PHOTO: Romanian interim PM Ludovic Orban delivers a speech before a no-confidence vote session in the Romanian Parliament in Bucharest, Romania February 5, 2020. Inquam Photos/George Calin via REUTERS

In power for a year in spite of his opponents’ hold over parliament, Orban, 57, has said he would undo a 40% pension hike ordered by the leftist PSD, which economists say could bloat the deficit to 11% of GDP and push Romania’s credit rating to junk.

He has pledged to halt efforts by leftist-led cabinets to sap court independence amid the judiciary’s scrutiny of alleged corruption and misuse of funds – accusations the PSD denies.

Orban has campaigned on a promise to bring the Black Sea state closer to the European mainstream following years of fiscal populism and political instability coupled with neglect of rundown infrastructure and public services.

“There is a decisive choice to make on Dec. 6: We can become a top EU member or remain, again, a laggard,” Orban told party members during the campaign. “I’m not happy with an average Romania.”

The Romanian leu has traded near all-time lows against the euro in the last year, following a string of corruption-related scandals that has toppled three governments since the last parliamentary election in 2016.

All three main rating agencies have Romania only one notch above junk and on a negative outlook.

Seeking re-election one year after the government it led stepped down in a no-confidence vote, the PSD has clawed back support in recent months, amid anxiety among its core rural electorate over Orban’s fiscal conservatism.

The coronavirus pandemic has also fuelled anger over social distancing restrictions that have hit thousands of small farmers who sell their produce in nearby cities.

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