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Romania Cabinet Shuffle Agreement Chances Weaken, Antonescu Says

The chances are weakening that Romania’s ruling coalition will reach an agreement over proposed cabinet changes, threatening the break up the alliance, according Liberal Party Chairman Crin Antonescu.

A debate over the government structure and ministerial appointments is becoming less likely to be resolved by Monday’s deadline, Antonescu said on Realitatea TV late yesterday. Prime Minister Victor Ponta told reporters today that he thinks Antonescu, whose party is the second biggest in the coalition, is angling to run for president from opposition this year.

Romania’s four-party ruling coalition, which has a two-thirds majority in parliament, is on the verge of breakup amid debates over personnel changes, with presidential elections scheduled for November.

“The political situation in Romania has become more complicated and the likelihood of the current coalition breaking up has increased,” Dan Bucsa, an economist at UniCredit Bank AG in London, said in a note today.

The leu weakened to the lowest level in almost a month yesterday of 4.5171 per euro and traded little changed at 10:30 a.m. in Bucharest today. It’s down 1 percent this year. The yield on Romania’s 2024 dollar-denominated bonds fell 2 basis points, or 0.02 percentage point, to 4.77 percent, according to data compiled by Bloomberg.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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