New Romania govt set for parliament approval
Wed, 8 Feb 2012 23:09 GMT
* New PM aims to boost ruling party before election
* Anti-austerity protests felled predecessor
* All major parties committed to work with IMF
BUCHAREST, Feb 9 (Reuters) - Romania's parliament is set to approve a new government on Thursday and give the ruling Democrat-Liberal Party (PDL) a chance to clean up its austerity-tarnished image before elections due by November.
Former Prime Minister Emil Boc resigned this week after weeks of sometimes violent protests against austerity measures taken under an International Monetary Fund deal, which has sent the PDL's popularity sliding to less than 20 percent.
The designated new prime minister, 43-year-old Mihai Razvan Ungureanu, was proposed by the president and has the support of his predecessor's coalition, whose slim majority should seal the backing of parliament.
"I do expect this government to encounter no problems in the approval process in parliament," said independent political analyst Mircea Marian. "They are fresher, younger but not necessarily more competent."
Boc's jobs and salary cuts and sales tax hike helped rebalance the economy, but bit deep.
Romania is the second poorest member of the European Union and many are struggling to heat homes during the cold snap, a grim reminder of the last years of communism when dictator Nicolae Ceausescu paid the huge external debt by cutting food and heating supplies.
President Traian Basescu, the power behind the throne whose term expires in 2014, is keen for the PDL - from which he resigned to take office - to regain ground so he does not have to work with the leftist Liberal Social Alliance (USL).
The USL has more than 50 percent in opinion polls and has committed to work with the IMF, but has a track record of clashing with Basescu which could mean policy paralysis if it wins the election.
The coalition has 227 seats, versus 233 needed for a majority to approve the government, but can count on another 17 votes from ethnic minorities.
Financial markets have shrugged off the political tension after all major parties promised to work with the IMF, though the leu remains close to an all-time low. (Reporting by Sam Cage; Editing by Andrew Heavens)
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