Old rivals considering Romanian coalition make strange bedfellows

ROMANIA'S EX-COMMUNISTS and centrist allies of president Traian Basescu discussed forming a new coalition government yesterday, amid doubts about such a cabinet's potential commitment to anti-corruption measures and financial discipline during a global economic downturn.

The Liberal Democrats (PDL) close to Mr Basescu and the leftist Social Democrats (PSD) dominated last month's general election, but will have to surmount major policy and historical differences if they are to form a coalition which would have 329 of the 471 seats in Romania's parliament.

The PDL and Mr Basescu came to power on a pledge to crush graft, which flourished under a succession of PSD governments. He and his supporters have portrayed the party, which emerged from the communist regime of toppled dictator Nicolae Ceausescu, as a hive of cronyism and corruption.

The PSD made extravagant pledges before the election, including promises to increase welfare spending while abandoning a flat 16 per cent income tax and cutting taxes for poorer Romanians.

The European Union, which Romania joined last year, has criticised Bucharest for failing to stamp out corruption and improve its use of desperately needed EU funds. However, previous efforts to increase pressure on MPs and senior businessmen suspected of graft have been blocked by the PSD.

"This coalition has a chance to be created. But it will mean the fight against corruption is buried," commentator Mircea Marian wrote in the leading Evenimentul Zilei newspaper.

A more natural ally for the PDL would be the right-wing Liberals (PNL) of outgoing prime minister Calin Tariceanu, who came third in the election with 93 seats.

However, Mr Basescu and Mr Tariceanu loathe each other since their parties' coalition, formed after the last election in 2004, collapsed in acrimony. Furthermore, the Liberals demand that Mr Tariceanu retain the post of prime minister in the next government to counterbalance the power of the popular president.

"There are two parties that have voiced readiness to build a majority together . . . unfortunately, our Liberal colleagues excluded themselves," said PDL leader Emil Boc. "The PDL stance is consistent in highlighting the need to build a government with strong parliamentary backing. We are aware that we must give Romania a government as soon as possible, and I believe politicians should speed up negotiations."

Analysts say Romania needs to work quickly to combat the impact of a looming economic slowdown after several years of rapid growth.