Romanian Coalition Faces New Tensions Over Planned Spending Cuts

Ilie BolojanPhotographer: John Thys/AFP/Getty Images

Romania’s coalition government is under renewed strain after Prime Minister Ilie Bolojan warned that disagreements over a public administration overhaul risk derailing a wider fiscal reform package.

The premier was forced to remove the plan to cut administrative expenses by at least 10% from his second reform packageBloomberg Terminal after it faced a backlash from some of his coalition partners. The dialing back came in response to criticism from within the ruling alliance that his latest proposal was too tough, while Bolojan himself said the coalition’s initial proposal didn’t go far enough.