Romanian Prime Minister Victor Ponta resigned on Nov. 4, opening yet another tumultuous political period in the country. Ponta's decision came in the wake of mounting street protests across the country related to allegations that corruption led to a nightclub fire last week that killed more than 30 people, but his position had been fragile for months because of accusations of money laundering and tax evasion, among other charges.

The prime minister's resignation is expected to calm the streets, but it will take time for politics in the capital to stabilize. Complex negotiations over the formation of a new government will begin soon; in the meantime, an interim administration will govern Romania. Both the ruling center-left coalition and the center-right opposition have good chances of positioning themselves to appoint the next prime minister. But regardless of which ultimately pulls ahead, the new government will be short-lived, since Romania is scheduled to hold general elections in late 2016, if not earlier.

The political turbulence in Bucharest is unlikely to significantly alter the trajectory of Romanian foreign policy. Notably, Ponta's announcement occurred only hours before a meeting of the heads of state of NATO members from Central and Eastern Europe. The presidents of Romania, Poland, Hungary, the Czech Republic, Slovakia, Bulgaria, Lithuania, Latvia and Estonia are participating in the meeting, which is meant to cover the security situation in the region and to forge a common position before a general NATO summit next year. The meeting is still expected to proceed as scheduled, despite the events in Bucharest.

Meanwhile, on Nov. 3, Romanian President Klaus Iohannis (who is not threatened by the political scandal) met with his Polish counterpart, Andrzej Duda. During the meeting, Duda called for increased political and military cooperation between Poland and Romania, the two largest countries in the region. Duda also requested a more permanent NATO presence in the region and criticized Berlin's cooperation with Moscow on Nord Stream II, a pipeline project linking Russia and Germany that Bucharest sees as perpetuating Central and Eastern Europe's reliance on Russian natural gas. No concrete agreements were announced during the meeting, but it nonetheless highlighted Romania and Poland's shared desire to strengthen ties at a time when Western Europe is divided over EU policy on Russia. Indeed, Iohannis' meeting with Duda, combined with the emphasis of the Nov. 4 mini-summit, reflects Romania's enduring interest in strengthening its security alliances in Central and Eastern Europe and preserving close ties with the United States, even without Ponta at the helm. 

Ponta's resignation and the upcoming electoral season will probably slow down progress in Bucharest on certain key domestic issues, particularly regarding the Romanian economy.

However, Ponta's resignation and the upcoming electoral season will probably slow down progress in Bucharest on certain key domestic issues, particularly regarding the Romanian economy. They may, for example, delay domestic policy initiatives meant to attract foreign investment and stall ongoing negotiations with the International Monetary Fund (IMF) on a new credit line. The IMF is concerned about generalized corruption and inefficiency in the Romanian public sector. After an IMF mission visited the country in late October, the institution asked Bucharest to "preserve fiscal discipline" and "renew the momentum for structural reforms," especially regarding state-owned companies. The IMF also warned about the added burden recent tax cuts and wage increases would place on the country's deficit. Similarly, in mid-October, the U.S. ambassador to Romania urged the country to improve its regulatory system to foster foreign investment. A frozen parliament and a government with little chance to find its footing before elections would thus cripple decision-making in Bucharest, even if only for a spell, at an inopportune time.

RANE
SUBSCRIBERS ONLY

Expert analysis when it matters most.

Get access to RANE's decision-grade geopolitical intelligence.