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The Economist: Center-right wing parties will win legislative elections in Romania and will form a majority coalition

Center-right wing political parties, headed by the liberals, will win parliamentary elections in Romania in December and will form a majority coalition, according to Matthew Sherwood, senior economist at the Economist Intelligence Unit.

Sherwood participated in the online conference “The Economist – Europe's Landscape in the Shadow of the Pandemic. Romania: Transformation- Recovery- Resilience.”

 

Romania and the region it is part of entered this pandemic crisis in much better form than entering the global financial crisis, when there was a shock of debt crises in the euro zone. Therefore, Romania is in a much better form from the financial point of view, even if it suffers from the lack of a fiscal space, considering deficits of past years and the institutions' reduced capacity to fight the crisis, Sherwood said.

 

He added that a contraction of Romania's GDP of 5.7% was expected this year, while in 2021 there will be a slight recovery with a 4% increase, while levels prior the crisis will be reached in 2022.According to the economist, the way in which the political stage looks is very important.

 

The National Liberal Party, the leader of a minority government, did well in the September locals. We expect center-right parties, headed by the liberals, to win the December 6 legislative elections and form a majority coalition, he said.

 

Asked whether a majority government would make the difference, Sherwood answered that is was a big difference. He mentioned there had been five governments, the last three minority ones in this parliamentary cycle. There had been legal measures concerning certain advantages (pension, allocation increases) which if they remain they will represent a major risk for demoting and a majority coalition will be needed to solve this problem facing Romania.

 

The Economist representative also referred to Romania's low absorption power for European funds and pointed out measures should be adopted for that chapter.

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