Austerity topples Romanian government

Romania's left-leaning opposition will try to form a new government after torpedoing the centre-right cabinet in a confidence vote on Friday, the latest collapse of an austerity-minded ruling coalition in Europe.

Like other governments in the European Union, ousted Prime Minister Mihai Razvan Ungureanu's two-month-old cabinet has faced a wave of public anger against plans for spending cuts and tax hikes. Violent protests toppled his predecessor, Emil Boc.
"Today justice was done," said Victor Ponta, head of the left-leaning opposition Social Liberal Union (USL). President Traian Basescu, a political opponent, nominated Ponta to try to form a new government as prime minister.

The European Union's second-poorest member slashed public sector salaries and raised sales taxes to put its economy on a more solid footing, but the measures have hit the poorest as Romania emerges only slowly from a two-year recession. Ponta said he controls 228 seats in the 460 member parliament. He should be able to gain backing from smaller parties that will give him a clear majority. If parliament fails to back a new prime minister, an early vote would be held. The next general election is scheduled for November.
The International Monetary Fund, which with the EU has extended two loan packages to Romania, postponed a review there pending details on the shape of a new government. The deal is key to Bucharest's battle to maintain investor confidence. The IMF said it expected Romania to observe its economic policy commitments. The USL has more than 50 percent support in opinion polls. It has committed to work with the IMF, but if it takes power there will be uncertainty over whether it will roll back some austerity measures like wage cuts or hikes in sales tax. Reuters