Romania´s Government Survives Parliament Vote

Romania´s minority government survived a no-confidence vote in parliament on Wednesday.

Romania's minority government survived a no-confidence vote in parliament on Wednesday, prolonging political deadlock that has all but blocked reforms in the new European Union nation.

The vote means Prime Minister Calin Tariceanu's cabinet remains dependent on the support of opposition parties to push laws through parliament where it commands 20 percent of seats.

Analysts say this could threaten Romania's fiscal prudence ahead of a national election next year. But Tariceanu remained defiant, saying he would rather step down than compromise.

"We are not ready to make any compromise to cling to power. We can serve Romania from the opposition," he told a news briefing after the vote.

Without faster reforms, Romania could face sanctions from the EU which is monitoring progress in the new member, particularly in its fight against rampant corruption.

Economists warn that without sufficient fiscal prudence and effective absorption of EU aid, Bucharest runs the risk of sparking a financial crisis if it runs out of foreign cash to fund domestic investment.

The failure of the motion is also a slap in the face for the opposition Social Democrat Party (PSD), which had proposed it.

It reveals deep rifts within the powerful leftist group struggling with weak public backing. Polls put its support at half the level it won in the 2004 elections.

The motion was defeated with 220 deputies voting to support it, short of the required 232 in a secret vote that allowed PSD deputies to throw a lifeline to Tariceanu.

Analysts say many may have defied senior party members, unwilling to torpedo a weak cabinet over which they wield much control.

TESTING POLICIES

The first test ahead will be the passage of the 2008 budget plan, which the government is expected to discuss on Thursday.

"The Tariceanu government does not have a chance to survive, no government draft laws will receive support from the PSD," the leftist party's president Mircea Geoana told reporters.

Tariceanu lost his majority in parliament when his Liberal Party split with allies, including the Democrats (PD) of President Traian Basescu, over the direction of reforms.

His 3-year-old government was praised for speeding up reforms that won Romania entry to the EU in January. Political feuds, particularly between Basescu and the prime minister, have all but stopped policy momentum.

"The PSD and the PD will use all weapons at their disposal to block any government initiative in parliament," political commentator Stelian Tanase said.

"To survive ... the cabinet will need to bow to concessions.