Small coalition party quits Romania's cabinet

The party announced Sunday it was leaving the cabinet, citing lack of support in promoting its legislative agenda.

Source: AP

Sunday, 03.12.2006.

16:42

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Small coalition party quits Romania's cabinet

Four people, including two privatization officials — one from Seres' ministry — and two foreigners working for Credit Suisse First Boston Europe were arrested Thursday on commercial espionage charges relating to privatization deals.

Conservative Party spokeswoman Daniela Popa said Seres and Deputy Prime Minister Bogdan Pascu would resign, but that the party would continue to support the government in parliament to ensure political stability.

Popa said the party decided to leave the Cabinet because the four-party ruling coalition did not support its proposals to cut taxes on profits and food items.

While the Conservatives' support has been shaky in promoting the government's legislative agenda, their departure from the coalition is seen as a setback for Prime Minister Calin Popescu Tariceanu, whose own Liberal Party is on the verge of breaking up.

Tariceanu also has a rocky relationship with his main partner in the coalition, the Democratic Party, which is leading in the polls and has called early elections to be held. The prime minister, whose term expires at the end of 2008, has warned that the country needs political stability to ensure a smooth entrance into the European Union, which Romania will join in January.

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