Romania's president to appoint Marcel Ciolacu as PM; new pro-European coalition to tackle budget deficit, tax hikes, and re-run elections after far-right meddling.
Romania's outgoing president Klaus Iohannis designated leftist Social Democrat Prime Minister Marcel Ciolacu to form a new government on Monday after three pro-European parties agreed details of a coalition that gave them a parliamentary majority.
The coalition government, which is expected to receive parliament's vote of confidence later on Monday includes Ciolacu's Social Democrats, centre-right Liberals and the ethnic Hungarian Party UDMR. Including minority representatives, the coalition controls about 54% of seats in the legislative.
Three consecutive ballots to elect a new president and parliament in the European Union and NATO state which shares the longest land border with Ukraine descended into chaos when a little-known far-right pro-Russian politician won the first presidential round on Nov. 24. Amid suspicions of Russian interference, the top court annulled the election.
The new government will need to approve a calendar for a new two-round presidential election. The three parties in the coalition agreed to back a single presidential candidate to prevent the far right from winning. Their candidate at the moment is Crin Antonescu, a former Liberal Party leader.
"I am aware it won't be an easy mandate, it is essential that this government regain investors' confidence," Ciolacu told reporters.
Romania's new cabinet will also have the daunting task of lowering the budget deficit from an expected 8.6% of economic output this year - the EU's largest - to around 7% in 2025 and ratings agencies and analysts expect tax hikes.
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