Premier chosen by President Basescu has ten days to gain support of parties aggravated by his nomination

Neither the parliamentary parties, nor President Traian Basescu were able to find a politician to take on the challenge of putting together a new government in the current crisis, so that that the head of state opted for economist Lucian Croitoru, 52, who is close to governor Mugur Isarescu and has no political affiliation.

Croitoru is the third Premier appointed from outside the political world in twenty years, after Theodor Stolojan and Mugur Isarescu, with the task to build a government in full economic crisis and at a time of political turmoil, as well as to take the necessary reform steps to keep the foreign funding from the IMF and EU coming.

He says that "if it is going to be, it will be a political government," as requested by President Traian Basescu from the parties, after dismissing the idea of a technocratic government on Wednesday.

Advisor to NBR Governor Mugur Isarescu for a number of years, which include the 1999-2000 period when the latter was a Prime Minister, Croitoru has ten days to try to gain the political support of PSD (Social-Democratic Party) and PNL (National Liberal Party) to put a new government in place, after having failed to gain support from the two parties for his appointment to NBR deputy governor early this month.

"Had I not stood any chances of getting sufficient political support, I would have clearly said I would not take this position, but I guess there is a chance and I plan to take advantage of it. I am not thinking in terms of staying for one week or two months," Croitoru was quoted as saying by Mediafax.

Croitoru's official nomination confirmed one of the most often discussed versions for the option of the head of state, which only made the antagonistic positioning of PSD and PNL worse, with liberals threatening to file a petition with the Constitutional Court. UDMR (Democrat Alliance of Hungarians in Romania), however, showed a certain willingness to talk. Over the last few days, PSD, PNL, UDMR and the minorities have formed an about 65% parliamentary majority, backing Sibiu's mayor Klaus Johannis for Prime Minister.

Croitoru's competency when it comes to economy is unanimously acknowledged in political and business circles, yet the business sector has its doubts about the management abilities that the Premier appointed has not had a chance to show until now.

Basescu justified his choice of Croitoru by pointing to his economy-related competencies and his experience with the IMF, where he was Romania's representative from 2004 through 2007.

Romania risks having the third tranche from the IMF worth 1.5 billion euros delayed because it cannot fulfil the legislative commitments undertaken in the absence of a Government backed by the Parliament.

Jeffrey Franks, head of the IMF mission, yesterday stated that the Fund was monitoring the political developments in Bucharest but did not anticipate the agreement would be suspended. "It is to be expected that the delegation, which is supposed to start talks for the second assessment of the agreement will visit Romania once a new Cabinet has been formed."

The announcement that Croitoru was chosen did not encourage the RON, with quotes on the forex market keeping close to 4.30 RON/EUR, after the Stock Exchange ended the day with 0.35% decline.