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.
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AFP: Political turmoil cripples Romania’s economy
- “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.
- The first victim of the political row has been the local currency, the leu, which has lost nearly five percent of its value over the past few weeks.
- Romania obtained a 20-billion-euro ($25-billion) rescue package from the IMF, the EU and the World Bank in May 2009, in exchange for drastic spending cuts.
