Failure to enact laws as agreed with IMF leads to higher sovereign risk and interests

President Traian Băsescu’s call for a moratorium of the parliamentary parties for 30 to 45 days so that the laws agreed with the International Monetary Fund (2011 budget law, uniform salary law and pension law) could be passed fell on deaf ears yesterday. Economic analysts believe the failure to pass these laws until the end of the year would immediately result in a collapse of Romania’s credibility on financial markets – because it will all be treated as a breach of the agreement with the IMF, which will boost sovereign risk resulting in an increase in interest rates.
The Chamber of Deputies was frozen yesterday as it has been over the last two months for that matter, and the Senate rejected the modification of the pension law that would have allowed women to retire earlier, at 63, as requested by the head of state, which reveals that the ruling coalition (PDL, UDMR and UNPR) has lost control of the upper house.