Social Democrats issue ultimatum as Niculescu struggles to form government
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Prime Minister-designate Luca Niculescu is discovering the limits of his mandate as the Social Democrats (PSD) set terms for their participation in a new government. Sorin Grindeanu has demanded a transparent majority with the Liberals and the UDMR, explicitly ruling out a technocratic cabinet. Niculescu has admitted that if the math for a majority does not materialize, his withdrawal may be the only remaining option.
The economy is providing little cover for the political deadlock. The leu is sliding toward 5.5 against the Euro, a depreciation the National Bank may be forced to tolerate, while the IMF warns that the era of cheap money has ended. This comes as the fiscal authority uncovered five recruitment firms that allegedly used Asian labor imports to defraud the state of 6.2 million lei.
The judiciary is currently preoccupied with its own members and former candidates. Călin Georgescu, the former presidential contender, has spent a fourth day in questioning with anti-mafia prosecutors, while the appointment of the Prosecutor General’s husband to an administrative court has raised eyebrows: his entire career to date has been spent in criminal law.