Premier Emil Boc's Government was only eight votes away from
its second dismissal by Parliament last night, with the first
having happened on October 13th 2009, which shows how fragile and
complicated its situation will be in the future, given that not
even its own party backed it in its entirety.
The motion was denied with 228 votes in favour to 197 votes
against; PSD (Social Democratic Party) and PNL (National Liberal
Party) only needed 236 votes to dismiss the Government, but had
just 212 MPs, which means the rest of the votes in favour came from
those in power.
Economic analysts had a positive response to the dismissal of
the motion but warned that the steps to cut public spending due to
enforce after the Parliament vote were not enough, because the
economy needs investments to rebound.
There is one more hurdle to overcome, because the austerity
laws, which are regarded as enacted by Parliament without further
debates after the motion has been denied, will also go through the
Constitutional Court that has already been petitioned by the judges
of the High Court of Cassation and Justice.
"If the austerity measures are implemented, the upside is that
the budget deficit will comply with the target set and we will go
back to a sustainable level faster. The downside will be an impact
on the performance of the economy, as the decline in the people's
disposable income will reflect in consumer spending. Thus, the
rebound of the economy will be slower, but healthier, based on
investments and therefore on manufacturing rather than
consumption," commented Rozalia Pal, chief economist of UniCredit
Tiriac Bank.
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