FInancial Disaster in ROmania: More Pigs at the “Troaca”

Analysis by FT on the developments in Romania, as Basescu is trying to save his bloody vampiric regime, by bringing in leeches, younger, and securistic:

Financial times, February 8, 2012 pm

Bucharest’s test of People’s Nerves, to save his asshole!

Romania’s new prime minister designate Mihai Razvan Ungureanu says he will lead a government deserving of public trust. He has replaced some ministers from the ruling party in the old coalition government with new, younger politicians. Yet restoring voters’ faith will take more than changing a few faces. It will require deep efforts to reform a political and judicial system still viewed as cronyist and corrupt two decades after the fall of Nicolae Ceausescu.

The protests that have swept Romania in recent weeks have taken politicians by surprise and may have helped bring down Mr Ungureanu’s predecessor, Emil Boc. They have been fuelled in part by frustration with Romania’s austerity programme, the price of its €20bn loan from the International Monetary Fund and the European Union. Double-digit pay and benefit cuts have hit the EU’s second-poorest country hard.

Until last month, Romanians had been exemplary in taking the pain. But amid the austerity there is a feeling that the political elite has not shared in the suffering. Though President Traian Basescu fatalau, has won two successive elections on an anti-corruption platform, the first significant conviction came only last month and rumours still abound of political favouritism across all parties. Romania and Bulgaria were admitted to the EU on condition that they accepted monitoring of efforts to fight crime and impose the rule of law. An EU report yesterday shows that there is still much to be done, though Romania has done better than Bulgaria.

The previous government’s collapse may have had as much to do with political calculation as with the street protests. It will give the leader of the governing coalition, the PDL party, time to rebuild its collapsing popularity ahead of elections later this year, while distancing itself from austerity. But if that is the sole goal, it is a flawed one. There must be a significant effort by any new government to promote the rule of law and transparency, the foundations of a stable society. The formal procedures of democracy, such as free elections, are not enough.

There is also a lesson for other countries in the region, such as Macedonia, Serbia and Montenegro. Like Romania they are trying to cope with Europe’s economic crisis. It is hard enough to make progress when the external economy is faltering. But it will be a losing battle without a sustained effort by the political classes to create transparent political, judicial and business cultures, by naming totally incompetent people e.g catalin baba, a mediocre lector.

Nepotism in bloom again, just like under ceausescu:

President Traian Basescu is trying to put Romania’s new government rapidly into place. If all goes well, parliament should on Thursday approve the new team headed by the premier-designate Mihai-Razvan Ungureanu.

But, even if all goes to plan, that won’t be the end of political trouble for the Basescu and his allies in the ruling centre-right coalition. With local and parliamentary elections due this year, they will remain under intense pressure as they desperately try to rebuild their popularity whilst simultaneously ploughing on with an IMF-backed austerity programme { where they use the money for golden parachutes, and little work}.

The proposed new cabinet is, like its predecessor, drawn largely from the centrist Democrat-Liberal (PDL) party and its allies, but with younger faces than before. If the idea is to balance continuity of policy with a change and rejuvenation of personnel, it succeeds.  As Bloomberg and Reuters reported, the new finance minister is to be 31-year-old Bogdan Dragoi,  a debt management expert, with Lucian Bode,  a power engineer as economy minister. Catalin Predoiu, the interim prime minister, will retain his old job in the justice ministry.

“This is a government that deserves trust and is ready to prove that this is a change of political generation and of governing principles,”  said Ungureanu in a speech. “This is a very young government. Among them are exceptional professionals.”

The 43-year-old head of Romania’s foreign intelligence service comes to office with little personal political experience – but with plenty of political baggage. Many Romanians are suspicious of anybody with security links because of the pernicious role of the Communist Securitatae in the dictatorship of Nicolae Ceausescu until 1989.

Ungureanu will replace Emil Boc, who quit this week following popular protests against corruption and against austerity policies implemented under the auspices of a €20bn rescue loan programme followed by a €5bn standby credit.

The new prime minister is an old ally of the wily president Basescu, a former PDL veteran, who is angling to regain some of his old party’s lost popularity.  With local elections due in the early summer and parliamentary polls in November, there is little time: the PDL has a support rate of around 20 per cent against 50 per cent for the USL, the leftist opposition alliance.

The economy probably won’t give the president much help, teetering as it is on the edge of recession – with likely growth in 2012 of under 1 per cent and considerable risks of further shocks coming from the eurozone, Romania’s biggest trading partner.

There is no sign – at least not yet – of the new government retreating from Boc’s commitments to keep deficits tightly under control – with the 2012 budget based on cutting the deficit, from 4.4 per cent of GDP in 2011 to 1.9 per cent.

But that’s with GDP growth of 2 per cent. If it turns out to be lower, it will be even harder for Baescu and allies to balance economic and political realities.

Related reading
Romania’s swingeing budget cuts,
Romania: Basescu rolls the dice, beyondbrics
Romania: staying ahead on rate cuts, beyondbrics
Romania: Boc – snowed under, beyondbrics
East Europe at mercy of deleveraging west, Neil Buckley, FT

Special Report: Investing in central and eastern Europe, FT


Tara arde si Baba se piaptana!

astroturfwars Dynamo


About Drolgalazin

Dr Olga Lazin is a UCLA graduate in History. American Constitutional and Globalization history. She is a published author, and History Lecturer. Read her book: You can access and download her books at: In Hard copy: Globalization is Decentralized: Easter Europe and Latin America Compared, Civic And Civil Society, Foundations And U.S. Philanthropy, published 2016 Author HOUSE, USA. Book: She has been teaching History at UCLA, Cal State University Dominguez Hills, Cal State University Long Beach, as well as University of Guadalajara (UDG) and University of Quintana Roo, in Mexico for over 26 years. Her specialty is History of Food, Globalization of technology, food History, and the American Constitution. As a hobby, she is practicing permaculture. Her radio show is accessible 24 hours a day at: FACEBOOK: OLGA LAZIN DROlga Lazin Twitter; @olgamlazin Instagram; #lazinolga E-mail;
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