Romania's leftist government of PM Grindeanu wins vote of confidence

Record ID: 163090

  • Title: Romania's leftist government of PM Grindeanu wins vote of confidence
  • Date: 4th January 2017
  • Summary: BUCHAREST, ROMANIA (JANUARY 4, 2017) (REUTERS) VARIOUS OF ROMANIAN PARLIAMENT BUILDING PARLIAMENTARIANS AT THE BEGINNING OF THE SESSION CAMERAMEN PRIME MINISTER DESIGNATE, SORIN GRINDEANU, BEFORE HIS SPEECH CAMERAMEN (SOUNDBITE) (Romanian) PRIME MINISTER DESIGNATE, SORIN GRINDEANU, SAYING: "You will find in the governing programme that we have proposed for the vote all the
  • Embargoed: 19th January 2017 16:31
  • Keywords: Romania parliament vote
  • Location: BUCHAREST, ROMANIA
  • City: BUCHAREST, ROMANIA
  • Country: Romania
  • Topics: Government/Politics
  • Reuters ID: LVA0015XO0J09
  • Aspect Ratio: 16:9
  • Story Text: Romania's Social Democrat (PSD)-led coalition government of leftist Prime Minister Sorin Grindeanu won a vote of confidence by a comfortable margin in parliament as expected on Wednesday (January 4), marking the grouping's return to power after a one-year break.
    The new cabinet which has outright majority in the legislature won 295 to 133, parliament's ballot count data showed.
    The PSD was ousted in November 2015 when a deadly fire in a Bucharest nightclub brought nationwide protests over graft and public administration failings. In various alliances it governed for a total of about 17 years since the 1989 fall of communism.
    "You will find in the governing programme that we have proposed for the vote all the measures presented during the campaign by the PSD leader," said Grindeanu after praising party leader Liviu Dragnea for putting Romania's best interests first, drawing applause from leftist lawmakers.
    "In a normal country, the government seeks higher wages for citizens, not smaller wages in the hopes that more foreign investors will come. (…) We want foreign investment, but one that offers well paid jobs for Romanians."
    Led by an official convicted in an election rigging case, the PSD appears to have won the support of many Romanians with promises of increased social spending and economic security.
    The leu firmed 0.4 percent on the day to 4.5045 against the euro.
    However, its four-year term with junior coalition partner ALDE will be closely watched by Romania's partners in the European Union because of concerns over fiscal spending and a weakening of an anti-graft drive.
    Some economists warn the new government is likely to burst the EU's budget ceiling of three percent of GDP this year. A previously-approved one percentage point cut in value-added tax was enforced this month, and two other levies were scrapped.
    The PSD has promised a 16 percent hike in the minimum wage. A hike in pensions and a double-digit wage increase in the public health and education sectors are also already approved.
    The cabinet also wants to hike minimum pensions by 30 percent to 520 lei ($125) a month, boost welfare spending and scholarships, as well as scrap several taxes.
    Romania, which joined the European Union ten years ago, is seen as one of the bloc's most corrupt states. Along with neighbouring Bulgaria, its justice system is under special monitoring by Brussels.
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