Romanian Socialists, Liberals to form coalition

Dec 14, 2008, 23:05 GMT

Bucharest - Romania's top two political parties, the Socialists (PSD) and the Democratic Liberals (PDL), agreed Sunday to form a grand coalition to govern the country following October's inconclusive election result.

The two parties agreed to form a 'partnership for Romania' by signing the coalition agreement. In light of coming hardships during the financial crisis, leaders of both parties said it was time to put political rivalries aside.

The PDL's Theodor Stolojan will be the coalition's prime minister. He and his government must now be approved by the parliament, where a vote is expected in the coming days.

The parties agreed to each run a candidate for 2009's presidential election.

The Democratic Union of Hungarians in Romania (UDMR) will not participate in the government, the first time the party has been excluded in 12 years. That decision was made at the behest of the PSD. The UDMR received 6 per cent of the vote in October.

Romania is home to 1.4 million Hungarians. Participation of the UDMR in the government is considered by many to have been a key factor in maintaining calm relations between Romanians and Hungarians within Romania.

Emil Boc, head of the PDL said that the coalition will have to focus on creating jobs and bolstering purchasing power. Judicial reform is another priority, he said.

But that could prove to be a sticking point with the PSD, which has, to date, resisted European Union demands for reforms of the Romanian legal system. The Romanian anti-corruption office has opened investigations into multiple PSD party leaders.