Romanian coalition government collapses

October 2, 2009 Romania's coalition government fell apart on Thursday, after all of the Social Democrat (PSD) ministers resigned, protesting the firing of another cabinet member. PSD member Dan Nica was fired earlier in the week after he made a statement suggesting the possibility of election fraud in November's upcoming presidential ballots. The PSD party leader, Mircea Geoană, said that the entire PSD had resigned to protest against Nica's sacking.

"All PSD ministers, supporting Dan Nica, are announcing their resignation from government. The president succeeded in triggering a political crisis, Geoana said.

The other major party, the Liberal Democrats (PD-L), will be able to rule by itself until the elections come. However, appointments for new ministers will have to be approved by the parliament.

The collapse has prompted concerns that Romania will not be able to meet the International Monetary Fund's fiscal targets in exchange for US$29 billion in aid given to the country in 2009.

Koon Chow, a strategist for Barclays Capital said to the Reuters news agency that "one needs to see how a minority government, if that's what we do get, can continue to adhere to the IMF programme. That's key. The worst that could happen is that the next tranche will be delayed for a few months, I don't think the next government will walk out of the programme."