Tag Archives: PSD

Why no one actually won Portugal’s parliamentary elections

Portugal's prime minister Pedro Passos Coelho celebrates Sunday's victory, even though it may turn out to be bittersweet. (Facebook)
Portugal’s prime minister Pedro Passos Coelho celebrates Sunday’s victory, even though it may turn out to be bittersweet. (Facebook)

The headline from Sunday’s Portuguese parliamentary election results highlighted the fact that the country’s center-right government won despite the fact that it implemented an unpopular bailout program that entailed difficult spending cuts and tax increases.portugal flag

That’s true, of course, and the electoral coalition of prime minister Pedro Passos Coelho did emerge with the largest share of the vote. Later this week, it’s expected that he will receive a mandate to form a new government from Portugal’s president Aníbal Cavaco Silva.

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RELATED: Portugal holds first post-bailout elections

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With neither of Portugal’s mainstream parties able to win a majority of seats in the country’s 230-member, unicameral Assembleia da República (Assembly of the Republic), early elections seem certain to follow in due course. Though it’s likely that Passos Coelho’s center-right coalition, Portugal à Frente (Portugal Ahead) will indeed form a minority government, it will need the support of its chief opponent, the center-left Partido Socialista (PS, Socialist Party) to pass next year’s budget and other key measures. With the country no longer subject to the term of its prior bailout program, and with the economy set to grow for the second consecutive year in 2015, the Socialists will almost certainly demand a high price in exchange for support, including some relief from the austerity measures of the past half-decade.

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A disagreement, however, could lead the country to a snap vote, perhaps as soon as next summer. While no new elections can follow for six months, no minority government since the end of the Salazar-era military dictatorship in 1974 has been able to hold onto power for a full four-year term.

In truth, no one won Portugal’s elections, and turnout dropped from 5.59 million (around 58%) in 2011, then a record low since the return of democracy, to just 5.38 million on Sunday (around 57%). The center-right’s ‘victory’ is as Pyrrhic as they come, the center-left’s modest gains belie doubts about past performance, and radical leftists haven’t received the same welcome as in crisis-struck Spain or Greece.
Continue reading Why no one actually won Portugal’s parliamentary elections

Portugal holds first post-bailout elections

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António Costa, the popular former mayor of Lisbon, campaigns earlier this week. (Facebook)

Portugal might be the only place in crisis-plagued Europe where politics still feel like they’re stuck in the year 2000.portugal flag

There’s no virulent anti-austerity party like Podemos (the far-left movement of indignados in neighboring Spain) or the plucky SYRIZA of Greek prime minister Alexis Tspiras.

There’s no citizen’s movement of the kind that powers Beppe Grillo’s Five-Star Movement in Italy or Czech finance minister and businessman Andrej Babiš’s ANO.

There’s no anti-EU group like Nigel Farage’s UKIP or the eurosceptic Alternative for Germany.

There’s not even an anti-immigrant force like the far-right parties of Scandinavia or Marine Le Pen’s Front national in France.

It’s still a country that only last year returned to GDP growth after four years of recession in the past half-decade, a country with a 13% unemployment rate, a country that has hemorrhaged hundreds of thousands of educated graduates to jobs elsewhere in Europe and the Lusophone world. Portugal concluded its €78 billion bailout in May 2014 ahead of schedule (and without needing a second bailout) after a program of income tax and VAT increases and cuts to social spending, wages, benefits, unemployment benefits and public-sector jobs.

Still, no one seems incredibly angry in Portugal about any of this.

Portuguese prime minister Pedro Passos Coelho and his deputy and foreign minister, Paulo Portas, campaign for reelection for their center-right government. (Facebook)
Portuguese prime minister Pedro Passos Coelho and his deputy and foreign minister, Paulo Portas, campaign for reelection for their center-right government. (Facebook)

That’s perhaps one reason why the current center-right government, headed by prime minister Pedro Passos Coelho, has such a good chance of at winning reelection on October 4, when voters will elect the 230 members of Portugal’s unicameral Assembleia da República (Assembly of the Republic).  Polls show that his center-right electoral coalition, anchored by the Partido Social Democrata (PSD, Social Democratic Party), will win the largest share of the vote. That’s probably only because Passos Coelho was smart enough to join forces with his junior governing partner, the more socially conservative Centro Democrático e Social – Partido Popular (CDS-PP, Democratic and Social Center — People’s Party).

Together, the coalition now holds a narrow lead over the opposition center-left Partido Socialista (PS, Socialist Party), led by the charismatic former mayor of the Portuguese capital of Lisbon, António Costa, who has served as a minister in several administrations, most recently as interior minister in the cabinet of now-disgraced former prime minister José Sócrates.

Although the forces of the united Portuguese right will likely fall far short of their 2011 electoral victory, the Socialists will likewise not achieve the same clear victory of the 2009 election. While that means the newly united Portuguese right is favored to win a narrow victory, it also means that no single party will have a majority in the National Assembly.

Another explanation for the election’s conundrums?

No one really cares.  Continue reading Portugal holds first post-bailout elections

Could Romania’s corruption-tainted Ponta be gone for good?

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When a country’s prime minister is targeted in a corruption inquiry, you’d expect him to protest vigorously, using every political and governmental lever to bolster his support.Romania Flag Icon

Faced with his own troubles and an investigation by Romania’s National Anti-Corruption Directorate (known by its Romanian acronym DNA), prime minister Victor Ponta has apparently done the opposite — citing the need for recovery from a knee surgery, Romania’s prime minister notified the country that he would be stepping down on an interim basis of up to 45 days. For now, deputy prime minister Gabriel Oprea is now the acting prime minister while Ponta remains in Istanbul recuperating.

It’s an odd decision, though, and Ponta’s decision to leave the country within days of corruption charges could embolden his political enemies, though his center-left Partidul Social Democrat (PSD, Social Democratic Party) and its allies have a strong majority in Romania’s parliament.

The National Anti-Corruption Directorate alleges that while working as a lawyer in 2007, Ponta (pictured above) received €40,000 for legal work that he didn’t perform from another attorney — who Ponta later appointed to his cabinet. For now, Ponta’s parliamentary majority refuses to lift his immunity, and his allies are even threatening to weaken the anti-graft laws under which the DNA has stepped up its scrutiny of the entirety of Romania’s political elite. The country consistently ranks among the most corrupt countries in the European Union alongside Bulgaria, both of which joined the European Union in 2007. Romania’s president Klaus Iohannis, a political rival who faced off against Ponta in last year’s presidential election, has already called on Ponta to step down. That’s unlikely — and fresh parliamentary elections in Romania aren’t due until 2016.

The chief prosecutor of the DNA, Laura Codruța Kövesi, has empowered the role of an institution that was founded only in 2002 — under her watch, the office won a conviction against Adrian Năstase, Romania’s prime minister between 2000 and 2004, on corruption charges, among many others.

Nevertheless, it’s odd that Ponta essentially sneaked out of the country for knee surgery on June 14, and it’s odd that Ponta sought to relinquish control as prime minister.  Continue reading Could Romania’s corruption-tainted Ponta be gone for good?

Iohannis upsets Ponta in Romanian presidential election

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It’s becoming a more German Europe in more ways that one.Romania Flag Icon

In a stunning upset victory, Sibiu mayor Klaus Iohannis, an ethnic German, defeated prime minister Victor Ponta, in Sunday’s Romanian presidential election, challenging confident predictions that Ponta would easily take the presidency.

Ponta’s center-left Partidul Social Democrat (PSD, Social Democratic Party), dominated both the December 2013 national parliamentary elections and the May 2014 European parliamentary elections, and Ponta entered the runoff as the prohibitive favorite after a resounding victory in the October 2 first round, when he took 40.44% of the vote to just 30.37% for Iohannis, the new leader of the center-right Partidul Național Liberal (PNL, National Liberal Party).

But Ponta’s 10-point lead disguised the fact that he fell 10% short of an absolute majority and, as voters’ minds focused on the runoff, Iohannis gained from a surge in turnout — from around 53% in the first round to over 64% in the runoff.

That’s despite the endorsement that Ponta won from third-place challenger, Călin Popescu-Tăriceanu, a former PNL leader and the country’s prime minister between 2004 and 2008, who founded the Partidul Liberal Reformator (PLR, Liberal Reformist Party) in July, helped boost Iohannis to an unexpectedly wide margin of victory — 54.50% to just 45.49% for Ponta.

Iohannis, a physics teacher by training, has served as mayor of Sibiu, a city in Transylvania, since 2000, and he led the relatively small Forumul Democrat al Germanilor din România (FDGR, Democratic Forum of Germans in Romania) from 2002 to 2013. As outgoing incumbent Traian Băsescu receded from the spotlight after a decade as president, Iohannis assumed the leadership of the PNL, the larger of Romania’s two major opposition parties, though Iohannis also had the support of Băsescu’s Partidul Democrat-Liberal (PD-L, Democratic Liberal Party).

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Though the PNL joined forces with Ponta (pictured above) in 2011 to form the Social Liberal Union, it left the coalition in February 2014 to enter opposition, eyeing an alliance with the PD-L. When the PNL suffered disappointing losses in the May European elections, however, its leader Crin Antonescu stepped down, paving the way for Iohannis to reboot the party and become the joint PNL/PD-L presidential candidate.

Though ethnic Germans settled much of Transylvania, including the city of Sibiu, two waves of German exodus, first after World War II and again after the end of the Cold War and the fall of the Iron Curtain, have left few German-speaking enclaves in Romania. Today, just over 4% of Romanians are ethnically German. Continue reading Iohannis upsets Ponta in Romanian presidential election

Portugal is set for a center-right government

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Twenty-two days later, Portugal is set to return to its center-right government, capping a month of twists and turns in a political crisis that began with the resignation of Portugal’s finance minister Vítor Gaspar and, then, the resignation of foreign minister Paulo Portas over the austerity program that Gaspar had been in charge of implementing as a condition of Portugal’s €78 billion bailout. portugal flag

Portugal’s prime minister Pedro Passos Coelho (pictured above) reached a deal over a week ago to continue the center-right government led by prime minister and his Partido Social Democrata (PSD, Social Democratic Party) in coalition with the more socially conservative party Portas leads, the Centro Democrático e Social – Partido Popular (CDS-PP, Democratic and Social Center — People’s Party), soothing the mercurial Portas by appointing him deputy prime minister and giving him additional input over future bailout discussions and the course of Portuguese economic policy.

But Portugal’s president Aníbal Cavaco Silva, formerly a PSD prime minister from 1985 to 1995, and himself often the subject of Portas’s barbed criticism, refused to approve the deal, instead asking the two parties to bring the opposition center-left Partido Socialista (PS, Socialist Party) into government for a ‘grand coalition’ that would govern through June 2014, the end of the current bailout program.

Read more background here.

Despite talks over the past week, the three parties have failed to come to an agreement, and Cavaco Silva will now approve the government, a move that’s already pushing down Portugal’s 10-year bond yield:

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Obviously, the Socialists would never join a government when they lead polls by nearly 10 points, despite the fact that it was the decision by Socialist prime minister José Sócrates to seek a bailout that led to snap elections in June 2011 that brought Passos Coehlo and Gaspar to power.

The challenge for Passos Coehlo is now three-fold: Continue reading Portugal is set for a center-right government

Coalition crisis brings Portugal back to center-stage in eurozone bailouts saga

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Until today, Portgual’s beleaguered government looked like it would avoid crisis — just barely.portugal flag

But the decision by Portugal’s president to seek a broad unity government to carry out the terms of Portugal’s bailout program has cast doubt again on whether the center-right government led by Pedro Passos Coelho will be able to serve through the end of its natural term of government in 2015 or at least long enough to see through the termination of the €78 billion bailout program in June 2014.

Despite a deal last week that saw Passos Coelho’s more conservative coalition partners agree to return to government, Portuguese president Aníbal Cavaco Silva, who served as prime minister of Portugal from 1985 to 1995, is now pushing for a broader coalition in light of risks that the government might falter again.  Cavaco Silva’s top priority is that Portugal has a reliably strong government to see through the bailout program next year and to avoid snap elections now in favor of early elections sometime next June.

But that appears to have backfired, and it remains unclear just what will happen next in Portugal’s governing crisis — Cavaco Silva’s ploy may have made early elections even likelier, which are certain to become a referendum on further austerity measures in accordance with Portugal’s bailout.  The political crisis comes at a time when Lisbon was set to host International Monetary Fund and European Union officials next Monday for a review of the bailout program and amid reports that Portugal will require a second bailout when the current one runs out next year.

Portugal’s most recent crisis began when finance minister Vítor Gaspar resigned on July 1 after rising complaints over the implementation of the bailout program.  Gaspar, a technocratic economist first appointed after the June 2011 elections that swept Passos Coelho and his center-right Partido Social Democrata (PSD, Social Democratic Party) into power.  He had become the poster child for austerity and widely reviled as Passos Coelho’s party has fallen up to 10 points behind the main center-left opposition, the Partido Socialista (PS, Socialist Party) in polls.

Passos Coelho immediately appointed treasury secretary Maria Luís de Albuquerque as Gaspar’s replacement, but the following day, his foreign minister Paulo Portas resigned.  Portas, also the leader of his more socially conservative coalition partner, the Centro Democrático e Social – Partido Popular (CDS-PP, Democratic and Social Center — People’s Party), indicated that he would pull his party’s support from the coalition in opposition to the new finance minister’s appointment, arguing that it marked a continuity of policy with which Portas and his party now disagreed.

Nonetheless, a weekend deal between Passos Coelho and Portas appeared to have healed the rift — Portas would become deputy prime minister and take a larger role in steering the country’s finances, though de Albuquerque would remain as the new finance minister.  Though the deal required Cavaco Silva’s approval, it seemed likely to win it this week, given that Cavaco Silva (pictured above) had been crucial in bringing Passos Coelho and Portas back together.

Instead, Cavaco Silva’s call for a unity government to include the Socialist Party as well has renewed the Portuguese political crisis, given that the Socialists and their new leader, António José Segurocontinue to push for early elections rather than join a unity government.

Though Portuguese 10-year bond yields have fallen from a recent July 3 high of 7.47%, they edged up to a still-worrying 6.77% today after Cavaco Silva’s gambit.

While Cavaco Silva may have failed, his logic isn’t unreasonable.  Cavaco Silva’s goal was to steer Portugal between what he viewed as two poor alternatives — one in which he’ll have to trust  Portas and the conservative Christian Democrats to see through the bailout program, and another in which Portugal faces snap elections that could result in a hung parliament (or worse, if the two major leftist blocs outperform already robust expectations).

Continue reading Coalition crisis brings Portugal back to center-stage in eurozone bailouts saga

Gaspar defends Portuguese economic program at Brookings

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Portuguese finance minister Vítor Gaspar (pictured above) spoke to a small audience at the Brookings Institution Tuesday, notably less than 36 hours after Cyprus and the ‘troika’ of the European Commission, the European Central Bank and the International Monetary Fund agreed on the terms for a Cypriot bailout — the fifth such eurozone bailout during the currency zone’s sovereign debt crisis.portugal flag

Of course, Portugal is one of those of other five countries, and Gaspar, for the past 21 months, has been responsible for implementing the terms of Portugal’s own bailout program.

Gaspar presented as optimistic a case as possible for Portugal’s current economic state on Tuesday. But he admitted that despite gains in lowering the country’s budget deficit, restoring Portuguese banks to greater health, and boosting the growth of Portuguese exports (the latter as much a sign of painful ‘internal devaluation’ of wages and incomes within Portugal as any sign of newfound productivity or competitiveness), Portugal’s GDP growth and employment rate remain problematic.  The Portuguese economy contracted by 1.6% in 2011 and 3.2% in 2012, and is expected to contract by a further 2.3% in 2013, while its unemployment rate, as of the last quarter of 2012, is 16.9%, its highest level yet.

As Gaspar noted, Portugal’s economy — second only to Italy’s — was already on the ropes when it entered the eurozone.  In particular, from 1990 to 2012, he claimed that the Portuguese economy marked a poorer performance than either Japan during its ‘lost decade’ or the United States during the Great Depression.  Regardless of whether that’s exactly right, there’s no denying that Portugal has faced long-term structural problems — since 2000, it’s notched GDP growth in excess of 2% just once (in 2007, when it grew by 2.37%, and that was at the height of the eurozone and global credit boom).

Gaspar placed much of the blame on Portugal’s failure to pursue macroeconomic stability in accordance with ‘best practices’ — i.e., Portugal simply failed to adjust properly upon accession to the eurozone 14 years ago.

Gaspar serves under prime minister Pedro Passos Coelho, whose liberal, center-right Partido Social Democrata (PSD, Social Democratic Party) came to power in the last election in coalition with the more socially conservative Centro Democrático e Social – Partido Popular (CDS-PP, Democratic and Social Center — People’s Party).

Among his solutions are greater EU-level banking union as a means of reducing the risk premium associated with peripheral economies such as Portugal’s — Gaspar added that the higher borrowing costs that constitute financial headwinds, especially in the context of budgetary adjustment.

But it was surprising not to hear any mention of the emigration of up to 1 million Portuguese from the country over the past 14 years — and nearly 250,000 since 2011 alone.  Passos Coelho in late 2011 was criticized when he suggested that young, enterprising Portuguese citizens should emigrate to Portuguese-speaking countries, such as Brazil in South America, or to Angola in southeastern Africa, still in the throes of an oil boom.  Angolan visas issued to Portuguese nationals jumped from just 156 in the year 2006 to nearly 150,000 by mid-2012.

Mozambique, another former Portuguese colony, apparently issues 200 visas a day to Portuguese nationals.

Invariably, that escape valve has kept Portuguese unemployment lower than the rates over 25% recorded in Spain and Greece.

Edward Hugh at A Fistful of Euros has made a very compelling case that the emigration of younger, working age Portuguese, combined with a decreasing birth rate and greater longevity has resulted in relatively fewer workers contributing to pensions and health care for relatively greater numbers of retirees, placing extraordinary long-term fiscal pressure on Portugal, given the lackluster expectations for future growth: Continue reading Gaspar defends Portuguese economic program at Brookings

Ponta set to consolidate power in Romanian in Sunday’s elections

It’s all but certain that Romania’s prime minister, Victor Ponta, will emerge from Romania’s Nov. 9 parliamentary elections as not only the winner, but with an extraordinary mandate to govern in his own right. 

Ponta (pictured above) became prime minister earlier this year in May after the government of Emil Boc fell over protests against the austerity measures that Boc’s government had implemented, in large part dictated as a condition of loans from the International Monetary Fund that have buoyed Romania’s budget since 2009.

Shortly after taking office, however, Ponta start acting in ways that have caused alarm throughout the European Union — Ponta called a constitutionally suspect referendum on July 30 to remove Romania’s president, Traian Băsescu, for overstepping his authority, despite a ruling to the contrary from Romania’s Constitutional Court.  That referendum failed because only 46.23% of voters turned out for the referendum (lower than the 50% threshold required), but Ponta and Băsescu have been locked in political warfare ever since, and will likely continue to do so until Băsescu’s term ends in 2014, although it seems very likely that Ponta and his allies could try to impeach Băsescu after Sunday’s parliamentary elections.

Ponta’s referendum against Băsescu was only one of several constitutionally suspect actions in the first months of his tenure as prime minister.  Ponta made blatant attempts to put allies in charge of Romanian public television, attempted to push through a new first-past-the-post electoral law (that was ultimately rejected by Romania’s constitutional court), stacked the leadership of Romania’s parliament with his allies, and has been accused of plagiarism in his doctoral thesis.

Given that Romania, Europe’s ninth most-populous country with 21 million people, has been a member of the North Atlantic Treaty Organization since 2004 and a full European Union member since 2007, U.S. and European policymakers are anxious that Ponta will attempt to steamroll the Romanian judiciary and/or Băsescu.  The political turmoil in Romania has already caused EU officials to delay Romania’s entry into the border-free Schengen Area,  the free-travel zone that covers much of Europe.

It seems even more unlikely that the election will settle the feud between Ponta and Băsescu, who seems set to do everything he can within his role as Romania’s head of state to frustrate Ponta.  It’s possible that Băsescu could even refuse to nominate Ponta as prime minister following Sunday’s election, which would result in a constitutional crisis and, potentially, new elections.

The election comes at a time when outside investors are losing patience with Romania’s increasingly negative political climate, and, in particular, the IMF will increasingly pressure Romania’s government for concessions before early next year, when its current €5 billion funding package expires.

The latest polls all show a remarkably consistent lead for Ponta’s Uniunea Social Liberală (USL, Social Liberal Union), a patchwork alliance of various parties that formed just in 2011, primarily Ponta’s own Partidul Social Democrat (PSD, Social Democratic Party), the one-time center-right Partidul Naţional Liberal (PNL, National Liberal Party) and others.

Together, the USL as an alliance holds at least 161 seats (the PSD with 92 seats, the PNL with 57) in the 315-member Chamber of Deputies (Camera Deputaţilor), the lower house of Romania’s parliament (Parlamentul României), going into Sunday’s elections, and look very much likely to extend that lead.

Currently, the largest party in the Chamber of Deputies, with 98 seats, is the Partidul Democrat-Liberal (PDL, Democratic Liberal Party), Băsescu’s party, which had governed after its victory in 2008 parliamentary elections until Boc’s government fell earlier this year.  The PDL, which is running under a center-right patchwork alliance, the Alianţa România Dreaptă (ARD, Right Romania Alliance), that formed only in September 2012 as an alliance among the PDL and two smaller parties, the National Peasant Christian-Democratic Party and Civic Force.

The ARD / PDL, however, remains deeply unpopular in a country that saw just 1% GDP growth in 2010, contracted by 0.4% in 2011, and has pushed through three years of harsh austerity measures.

In the 137-member Senate (Senat), the Romanian parliament’s upper chamber, Ponta’s PSD holds 40 seats and his allied PNL holds 27 seats, with just 35 for the PDL.

One recent poll, however, gave Ponta’s USL fully 62% of the vote to just 17% for the ARD, the second choice of Romanian likely voters.

Continue reading Ponta set to consolidate power in Romanian in Sunday’s elections

Aftermath of Romanian referendum leaves both sides with victory

Romania’s president Traian Băsescu narrowly survived a referendum on Sunday that would have removed him from office, but his meager support in the referendum will only further encourage his political rival, prime minister Victor Ponta. 

Although 87.52% of those who voted supported Băsescu’s impeachment (just 11.15% voted against it), only 46.23% of eligible voters turned out to vote on the referendum — lower than the 50% threshold required to remove the president.

In many ways, the vote may be the best situation for Ponta, whose social democratic Partidul Social Democrat (PSD, the Social Democratic Party) has formed an electoral union with the free-market liberal Partidul Naţional Liberal (PNL, the National Liberal Party).  Băsescu, who belongs to the rival center-right Partidul Democrat-Liberal (PD-L, the Democratic Liberal Party), will remain in office, but with significantly less political standing.

Ponta, whose electoral union won a landslide victory in recent local elections, is now the undisputed top mover in Romanian politics, and he will go into November elections with a very strong hand, given that Romanian voters blame the PD-L for austerity measures designed to bring Romania’s budget down to just 3% of GDP (as required pursuant to the terms of a loan from the International Monetary Fund that originated in 2009).

Ponta also remains another potential troublemaker (alongside Hungary’s Viktor Orbán) for the European Union to worry about.  He may have gone too far in the past three months since becoming prime minister — the European Union has been sounding the alarm at top volume for the past couple of weeks that it is not happy with Ponta’s efforts to undermine Romanian democracy and already-fragile legal institutions — calling the referendum, limiting Romania’s Constitutional Court, stacking Romania’s parliament with his own hand-picked leaders.

That he called the referendum was bad enough, but European leaders had made clear that Băsescu’s removal would have not been looked upon kindly.  Ponta and his allies therefore will emerge from Sunday’s vote having punished Băsescu, but not enough to bring the full force of EU ire upon them.

Ponta takes Romania to ‘cusp of dictatorship’ as Sunday’s presidential referendum approaches

Hungary’s Viktor Orbán seems to be in good company these days.

As it turns out, he’s no longer the only Eastern European leader who gives pause to European Union leaders worried about a backslide to democracy.

Since becoming prime minister of Romania in May of this year, Victor Ponta (pictured above) has taken an unorthodox approach to respecting Romania’s constitutional framework.  Ponta’s biggest gamble so far comes to a climax this weekend — on Sunday, Romania will hold a referendum on whether to remove Romania’s president, Traian Băsescu.  Ponta and his political allies argue that Băsescu overstepped his authority, and have moved to have him suspended from office pending the referendum.  Romania’s Constitutional Court has ruled otherwise, but the referendum is still going forward.

Accordingly, if over 50% of eligible voters turn out, and a majority vote to remove Băsescu, it could trigger even more worries about a quasi-constitutional coup d’état.  The European Union earlier this month issued a stinging report about Romania’s new government since Ponta’s ascension as prime minister, and European Commission president José Manuel Barroso minced no words about his concern:

“Challenging judicial decisions, undermining the Constitutional Court, overturning established procedures and removing key checks and balances have called into question the government’s commitment to respect the rule of law,” Barroso said. “Party political strife cannot justify overriding core democratic principles. Politicians must not try to intimidate judges ahead of decisions or attack judges when they take decisions they do not like.”

Romania, a country of 19 million people centered on the eastern edge of the EU, joined the EU only in 2007 after emerging in 1989 from a Communist dictatorship under longtime strongman Nicolae Ceauşescu — EU leaders are currently assessing whether to permit Romania to join the Schengen Area — Europe’s free-travel zone which has no internal border controls.

Like most countries in Europe, Romania’s political climate has been altered by difficult budget choices in light of the sovereign debt crisis across the EU.  The country is dependent upon loans granted initially in 2009 from the International Monetary Fund in exchange for commitments to bring down Romania’s annual budget deficit from a high of nearly 7% in 2009.  Despite rapid growth throughout the 2000s, Romania’s economy contracted by almost 10% in 2009 and 2010, and grew at only an anemic 1.5% in 2011.

Emil Boc, whose Christian democratic/conservative Partidul Democrat-Liberal (PD-L, the Democratic Liberal Party, and which is also Băsescu’s party) won the greatest number of seats in the 2008 Romanian legislative election, governed until February 2012 and attempted to enact austerity measures in order to bring Romania’s budget under firmer control.

When Boc’s government fell, Mihai Răzvan Ungureanu of the free-market liberal Partidul Naţional Liberal (PNL, the National Liberal Party), attempted to build a new government, with the support of the social democratic Partidul Social Democrat (PSD, the Social Democratic Party), the third of Romania’s three major parties.*  Although Ungureanu attempted to continue economic reforms, his government fell on a no-confidence vote on May 7, when the PSD’s Ponta replaced him.

Since then, it’s been an incredible two months for Ponta, whose government has attracted concern with staggering speed. Continue reading Ponta takes Romania to ‘cusp of dictatorship’ as Sunday’s presidential referendum approaches