Ex-PM, Teodor Stolojan, proposed as head of Romania coalition

Traian Basescu, Romania's president, has proposed Teodor Stolojan, an economist and former prime minister, as his candidate to head a grand coalition. It would encompass the centre-right Democrat Liberals (PDL), the centre-left Social Democrats (PSD) and a smaller party that represents Romania's ethnic Hungarians (UDMR).

Mr Stolojan, candidate of the Democrat Liberal party that emerged slightly ahead of their leftwing rivals in elections 10 days ago, faces the task of building a coalition at a time when an eight-year economic boom appears to be shuddering to a halt.

Mr Stolojan, a close ally of the president, said after his nomination that his first task would be to pass a new budget for 2009 and restart an economic and administrative reform process that has been stalled for the past two years.

During the election, his party campaigned on a platform of cutting taxes and boosting public sector pay - a platform similar to that of the Social Democrats, who also added an expanded infrastructure investment programme into the mix.

"We have two extremely urgent missions: the first is to prepare the 2009 budget draft and the second is to relaunch reforms essential for Romania's progress such as public administration, health and education," he told Reuters.

Dorel Sandor, a political consultant, said Mr Stolojan was likely to prove a methodical and competent technocrat.

If the potential coalition partners agree to the appointment, Romania would come full circle. In 1991, Mr Stolojan was appointed by Ion Iliescu, then president, to head a government of national unity after miners from the country's south-east caused chaos by rampaging through the streets of Bucharest. He served for less than a year.

The coalition is in many ways an unlikely one: the president, and PDL, to which he is close, have both defined themselves in terms of the fight against corruption in Romania, an area where the PSD have had a poor reputation.

One proposal under consideration is to split the economics and finance ministries, currently a single portfolio, dividing the two areas of responsibility between the the two largest parties.

Coalition negotiations may prove protracted, however. The PSD, who are under no obligation to accept Mr Stolojan's nomination, said this week that they would not be prepared to enter a coalition with the ethnic Hungarian party.

Source: Financial Times Limited 2008