Romania's new president nominates centre-right former mayor as PM
The nomination comes as Romania, a European Union and NATO member state, seeks to usher in a new government to end a protracted political crisis that has gripped the nation since last year.
Dan nominated 56-year-old Ilie Bolojan of the centre-right National Liberal Party, or PNL, after a fresh round of talks Friday following weeks of deliberations.
Bolojan had previously served as acting president from February to May, when Dan defeated a hard-right opponent in a heated presidential election rerun. The closely watched vote came months after the previous election was annulled by a top court, which plunged Romania into a deep political crisis.
Dan described Bolojan as the 'most suitable person' for the job, which includes tackling a budget crisis.
'It is in Romania's interest for the government to be supported by a solid majority, and the parties have understood this,' he said. 'Romania's urgent priority is economic recovery, but ... you need a solid foundation.'
Nomination will need to be approved by lawmakers
Bolojan's nomination will need to be approved by parliament, and his government is expected to be comprised of the leftist Social Democratic Party, or PSD, the PNL, the reformist Save Romania Union party, and the small ethnic Hungarian UDMR party.
The PSD has pushed for a power-sharing agreement that would see a rotation of the prime ministerial post.
Responding to his nomination, Bolojan said he's 'fully aware of the great responsibility' the role will bring and acknowledged it 'will not be an easy undertaking.'
'I will continue discussions with political parties to secure a parliamentary majority, finalise the government, and define the governing program,' he said. 'I will pursue three priorities: to restore order to the country's finances, to work toward good governance that creates conditions for development in Romania, and ... to show proper respect to the Romanian people.'
Reducing Romania's considerable budget deficit—one of the greatest in the 27-nation EU bloc—will be one of the main challenges facing a new government. Deep social divisions in the nation were also made clear by the controversies that surrounded the presidential election.
According to Cristian Andrei, a Bucharest-based political consultant, the new government will face the challenge of reaching a longer-term consensus over already delayed state reforms.
'There is only a disputed agreement on very short-term measures for the economic and budget crisis,' he told The Associated Press. 'If the short-term measures come with a social cost, inflation ... (and) will not be met by profound changes in policies and institutions, then the political crisis will loom over the next years and (future) elections.'
In the wake of the May presidential election, Bolojan, acting as president, named PNL's Catalin Predoiu to lead the cabinet after Marcel Ciolacu resigned when his coalition's candidate did not advance to the runoff.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
an hour ago
- Euronews
The Big Question: How can Volvo compete with Chinese EVs?
There are around 256 million cars on the roads in the European Union, according to data from the European Commission. With ambitious targets to phase out new petrol and diesel powered cars in the EU by 2035, an influx of Chinese EV brands such an BYD entering Europe and trade tariffs threatening the export market, the European automotive industry is at a critical moment. 'I think to have a credible end date for combustion cars there needs to be a very credible date also for investments and expansion of the charging networks. Otherwise, it will not be possible to be all electric by 2035,' Håkan Samuelsson, CEO and president of Volvo Cars, told Euronews. But what else needs to be done to ensure the industry stays alive, kicking and competitive? In this episode of The Big Question, Eleanor Butler sat down with Håkan Samuelsson to discuss the future of the automotive industry in Europe. Emissions targets softened In order to meet climate targets, the EU has introduced carbon limits for carmakers, looking at average emissions across a fleet. Many carmakers have sought to collaborate with other firms on these targets, forming 'pools' and combining their emissions. This means that companies with low-carbon or zero-carbon fleets can sell credits to more polluting automakers, permitting them to use a portion of their allowance. While EV frontrunners benefitted from these targets, demands are now softening. For instance, automakers can now average their emissions over three years instead of one. This means that if they overshoot the limit for one year, they can aim to undershoot for the next and avoid penalties. 'We plan, we develop these cars and we also, of course, saw value in emission credits that we could sell to other builders who are not as fast. And I think that's a good way of using that money to speed up the transition. And that is, of course, a big drawback now with the delay of everything, which is not good for our company,' Håkan told The Big Question. He also added that although countries like Norway are very advanced with their charging infrastructure, EV targets will not be met until charging capacity is boosted across the bloc. 'I think we need to rely on the possibilities to drive on a combustion engine when you lack charging possibilities,' Håkan added. Localised production for local tastes While some European carmakers are calling on the EU to impose tariffs on foreign competitors, Håkan takes a more liberal approach. 'There is really no protection in the form of tariffs or other ways. The only protection for our industry is that we shape up and we need to be more competitive.' 'I think a good forecast is that we will have very tough competition from new Chinese EV players [in the EU]. And then the sooner we get used to that and the sooner we start developing our cars, the better,' Håkan told The Big Question. In Europe, Volvo has already begun to produce the popular EX30 model in Ghent, Belgium in a bid to reduce delivery time and transportation costs and emissions. It's a similar situation in the US, where Volvo has a production plant in Charleston, South Carolina. Håkan hopes to increase production capacity here, not only to avoid Trump's tariffs but also to be closer to the customer base. 'We need now to find a bread-and-butter model that can sell in high volumes, which we can deliver faster to our customers and of course reduce stock and transportation costs. So local production is not only a cost increase, it has advantages also. 'So even if the tariffs come down to a more reasonable level, we still need to use our factory more than we do today,' he added. And in China, Håkan stressed that Volvo needs to really focus on what the local market is asking for, rather than replicating European offerings. 'Chinese customers are very tech-interested, so they like a lot of software features in their cars,' he explained. 'And I think that's an example of a situation where you can't just put European-developed features in the car, you need to develop [the tech] together with the Chinese to really lead.' The Big Questionis a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today's agenda. Watch the video above to see the full discussion with Håkan Samuelsson.
Fashion Network
6 hours ago
- Fashion Network
Investors head into Trump tariff deadline benumbed and blase
And they are not overly concerned. 'The market has gotten much more comfortable, more sanguine, when it comes to tariff news,' said Jeff Blazek, co-chief investment officer of multi-asset at Neuberger Berman in New York. 'The markets think that there is enough 'squishiness' in the deadlines – absent any major surprise – to not be too unsettled by more tariff news and believe that the worst-case scenarios are off the table now.' Both the tariff levels and effective dates have become moving targets. Trump said on Friday that tariffs ranging up to 70% could go into effect on August 1, levels far higher than the 10%-50% range he announced in April. So far, the U.S. administration has a limited deal with Britain and an in-principle agreement with Vietnam. Deals that had been anticipated with India and Japan have failed to materialize, and there have been setbacks in talks with the European Union. World stocks are meanwhile at record highs, up 11% since April 2. They fell 14% in three trading sessions after that announcement but have since rallied 24%. "If Liberation Day was the earthquake, the tariff letters will be the aftershocks. They won't quite have the same impact on markets even if they are higher than the earlier 10%," said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments in Singapore. "This financial system is so inundated with liquidity that it is hard to cash up or delever at the risk of lagging the markets, with April serving as a painful reminder for many who derisked and were then forced to chase the relentless recovery in the subsequent weeks." Investors have also been distracted by weeks of wrangling in Congress over Trump's massive tax and spending package, which he signed into law on Friday. Stock markets have celebrated the passage of the bill, which makes Trump's 2017 tax cuts permanent, while bond investors are wary the measures could add more than $3 trillion to the nation's $36.2 trillion debt. The S&P 500 and Nasdaq indexes closed at record highs on Friday, notching a third week of gains. Europe's STOXX 600 benchmark is up 9% in three months. But the risks of tariff-related inflation have weighed on U.S. Treasuries and the dollar, and jostled expectations for Federal Reserve policy. Rate futures show traders no longer expect a Fed rate cut this month and are pricing in a total of just two quarter-point reductions by year-end. The dollar has suffered a knock to its haven reputation from the dithering on tariffs. The dollar index, which reflects the U.S. currency's performance against a basket of six others, has had its worst first half of the year since 1973, declining some 11%. It has fallen by 6.6% since April 2 alone. "The markets are discounting a return to tariff levels of 35%, 40% or higher, and anticipating an across-the-board level of 10% or so,' said John Pantekidis, chief investment officer at TwinFocus in Boston. Pantekidis is cautiously optimistic about the outlook for U.S. stocks this year, but the one variable he is watching closely is interest rate levels. For now he expects to see interest rates dip in the second half, 'but if the bond market worries about the impact of the bill and rates go up, that's a different scenario.'
France 24
6 hours ago
- France 24
US tariffs to kick in August 1 for countries without deals, Treasury chief says
US tariffs will kick in on August 1 if trading partners from Taiwan to the European Union do not strike deals with Washington, Treasury Secretary Scott Bessent said Sunday. The rates will "boomerang back" to the sometimes very high levels that President Donald Trump had announced on April 2 -- before he suspended the levies to allow for trade talks and set a July 9 deadline for agreements, Bessent told CNN. Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on August 1." The president told reporters Sunday he had signed about a dozen letters to inform countries of rate hikes, to be sent out on Monday. "I think we'll have most countries done by July 9, either a letter or a deal," Trump told reporters Sunday, adding that some deals have already been made. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on August 1, "but the President is setting the rates and the deals right now." The tariffs were part of a broader announcement in April where Trump imposed a 10 percent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days. But he swiftly paused the hikes until July 9, allowing for trade talks to take place. Countries have been pushing to strike deals that would help them avoid these elevated duties. So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products. Bessent said the administration was "close to several deals." "I would expect to see several big announcements over the next couple of days," he said. But he would not say which countries he was referring to, adding: "I don't want to let them off the hook." 'Maximum pressure' playbook Aboard Air Force One on Friday, Trump said sending notices would be much easier than "sitting down and working 15 different things... this is what you have to pay, if you want to do business (with) the United States." Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that Trump was setting a new deadline with the August 1 date. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he said. He said the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal this weekend. Other countries were still expressing unease, however. Japan 's Prime Minister Shigeru Ishiba said Sunday he " won't easily compromise" in trade talks with Washington. And BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. When probed about worries that steep levies could feed into broader US inflation, Bessent said there was a difference between "inflation and one-time price adjustments."
