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February 7, 2012

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Romanian PM announces immediate resignation

THE Romanian prime minister yesterday announced the immediate resignation of himself and his government, saying he wanted to protect the stability of the country.

Emil Boc said he was resigning "to ease the social situation" referring to weeks of protests in Romania over austerity measures that he introduced in 2010.

Boc, who became prime minister in 2008, urged Romania's feuding politicians to be mature and rapidly vote for a new government. He defended his record, saying that he had taken "difficult decisions ... not because I wanted to, but because I had to."

He added that the International Monetary Fund has forecast growth of up to 2 percent this year lower than expected, but higher than the European Union average.

"This is a victory for those that demonstrated on the streets," said Crin Antonescu, head of the opposition Liberal Party. "The most corrupt, incompetent and lying government" since the 1989 anti-Communist revolt has gone, he said.

President Traian Basescu is expected to hold talks yesterday with the country's political leaders about a new prime minister, his spokesman Valeriu Turcan said.

Romania signed up for a US$26 billion loan with the IMF, the European Union and the World Bank in 2009 to help pay salaries and pensions, after the economy shrank by more than 7 percent. In 2010, the government increased sales tax from 19 percent to 24 percent and cut public workers' salaries by a quarter to reduce the budget deficit.




 

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