Special Report on the Vote of No-Confidence
On October 9th, the Parliament voted in favor of a censure motion against the Government led by PSD President Viorica Dăncilă. While the Dăncilă cabinet remains as an interim Government, it is now time for President Klaus Iohannis to decide on a future Prime-Minister. The President has already called on all parliamentary parties to come to Cotroceni on October 10th for consultations before coming forward with a new proposition for the Prime-Minister position. Given that there are some urgent situations that need to be resolved by a functioning Government (naming a third Romanian for the position of European Commissioner, adopting the second budgetary rectification and drafting the budget for the next year) we expect that Iohannis will make nominations as soon as possible. While, in theory, Iohannis can wait until after the presidential elections to make a nomination, he needs to be pro-active to appeal to his electorate. After actively criticizing this Cabinet for the past three years, Iohannis cannot afford to stand idly by while Dăncilă holds the interim Government for another month.


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Special Report on the new Prime-Minister (Ludovic Orban)
President Klaus Iohannis hosted a press conference on October 15th, after having discussed with all parties which are members of the Parliament. Iohannis proposed PNL leader Ludovic Orban for the position of Prime-Minister. Ludovic Orban already stated that PNL will have discussions with all political parties to gain their support for his future Government when it will come in the Parliament.


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WEEKLY FISCAL AND POLITICAL REPORT October 4th – 14th, 2019
Two EU Commissioner proposals by the Government seem to have been rejected so far by Ursula von der Leyen, leaving the Romanian spot in the Commission yet unfulfilled. While the Government was expected to wait for an official decision in the case of Dan Nica, due to the vote of no confidence having passed it is now more likely that the EU Commissioner seat will be taken by the candidate the new Government will propose. Sources in PNL have stated that the proposals for the seat will be Siegfried Mureșan and Adina Vălean.


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WEEKLY FISCAL AND POLITICAL REPORT, September 30 - October 6, 2019
The no-confidence motion against the government was formally tabled in Parliament. 237 parliamentarians signed in support of it (EN). This week, two other PSD MPs announced also their departure to the Pro Romania party. It can be considered that at this moment approximately 240 parliamentarians support the adoption of the motion. The minimum number of votes required for its adoption is 233. The vote of the censure motion will take place on Thursday, October 10th.


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WEEKLY FISCAL AND POLITICAL REPORT, September 23-29, 2019
Ludovic Orban, the president of the Liberal National Party (PNL) announced this week that the censorship motion drafted by the opposition forces was signed by 237 MPs (EN). The motion will be officially registered in Parliament on Monday, September 30th. According to parliamentary regulations, it must be debated after at least 3 days. Thus, given that Thursday is not a day of debates in the plenary of the parliament, most likely the MPs will be called to cast their vote on the censorship motion at the beginning of the following week (starting October 7). Even if the number of signatures gathered to support the motion is greater than the number of votes required for its adoption, it cannot be concluded with a high degree of certainty that the motion will be adopted (as signatures do not automatically turn into votes). Between the moment of signing the censorship motion and the vote, some MPs may be persuaded to change their position or to be absent on the day of the vote. However, we must emphasize that there are real premises, for the first time after the 2016 legislative elections, for the passing of a censure motion against the PSD government. This will impact, in anticipation of the vote on the motion, the authority of the prime ministers and of the ministers within their own working apparatus. It is to be expected that by the debate of the motion no acts of high relevance for the business environment will be adopted, neither at the level of the government, nor of the different ministries. Most likely, President Klaus Iohannis will continue to delay the appointment of new interim ministers for another week and thus the implementation of the recent decision of the Constitutional Court. If the government will be dismissed, it will continue to operate interim until a new government team will be validated in parliament. In this period the interim government will have reduced powers (for example it will not be able to issue Emergency Orders). The president will start negotiations with the parliamentary groups and propose a prime minister. Thereafter the designated PM will have 10 days to obtain the validation of the new government formula in the plenary of the parliament.  


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