Financial markets, although praising Croitoru’s economic credentials, were concerned about his ability to win parliamentary approval in an assembly dominated by opposition groupings that back a different candidate. The collapse of a minority cabinet this week sparked concerns over Romania’s ability to meet conditions for its 20 billion euro aid package from the International Monetary Fund. These worries intensified after Basescu said the IMF had postponed a review mission to Bucharest, due in the coming weeks, on the grounds it wanted to see a functioning government before it arrives.
“He is a specialist so the nomination is good,” said Nicolaie Alexandru-Chidesciuc from ING Bank in Bucharest. “But given statements made by political parties before the nomination, it is likely the political crisis will intensify. Damage to the economy from political woes is already showing. The Romanian leu traded near this week’s seven-month lows against the euro, while a government official said on Wednesday a planned eurobond issue would likely be postponed. A relatively poor Balkan state of 22 million people, Romania went through a sharp economic reversal in the last year, because of the global financial crisis and poor economic policies.
It turned from being the European Union’s fastest-growing economy and an attractive destination for foreign investors to a problem zone in dire need of aid.
