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World

Romanian PM keeps top ruling party job

Published Updated

Emil BocBUCHAREST: Romanian Prime Minister Emil Boc retained his position as head of the ruling Democrat Liberals in a party vote on Saturday, ensuring continued party support for government reforms under an IMF-led aid package.

Analysts had widely expected the Democrat Liberals to re-elect Boc, largely because he has close ties to President Traian Basescu despite his weak approval ratings after his cabinet took painful austerity measures.

Basescu will nominate the next prime minister after the 2012 parliamentary election.

Boc has survived five no confidence votes filed by the opposition over the last 15 months, and more are expected.

He has overseen a 20 billion euro aid package led by the International Monetary Fund, slashing public sector wages by a quarter, axing thousands of jobs and raising value added tax to rein in public spending.

Data showed on Friday the economy had climbed out of its prolonged recession in the first quarter, growing by 1.6 percent on the year, above market expectations.

The government has agreed a new precautionary IMF deal under which Romania will borrow money only if needed and will shake up inefficient state-owned companies and pursue energy reform. The IMF sees the economy growing 1.5 percent this year and up to 4 percent in 2012, but on Saturday Basescu said he expected a slightly higher figure in 2011.

Copyright Reuters, 2011

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