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Senate speaker: Political crisis without grounds could bring acute economic instability

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Senate Speaker Mircea Abrudean said on Monday that the questions in the Social Democratic Party (PSD)'s internal referendum should instead address why a political crisis is being triggered without valid grounds and who would bear the costs, warning that the outcome could be 'acute' economic instability.

Around 5,000 members from county organisations and the party's National Political Council are expected to take part in the PSD internal consultation, dubbed 'The Moment of Truth', which asks whether the party should withdraw political support for Prime Minister Ilie Bolojan.

'I believe different questions should be asked. First, why would we want to generate a political crisis at this moment, without any solid reason or serious justification, merely to replace someone who has promoted reforms? The logical answer is precisely to block those reforms. Another question would be who pays the cost of this political crisis, which will turn into acute economic instability and could jeopardise Romania's path to OECD accession, an objective we have been pursuing for a long time and which risks being missed because of political and economic instability,' Abrudean said.

According to him, Romania risks losing 'many billions of euros' from the National Recovery and Resilience Plan (PNRR), while accession to the OECD could have brought an additional 1% in economic growth, according to the central bank.

'If we look at rating agencies, which would clearly downgrade us, that would also mean higher borrowing costs, higher inflation and greater costs for Romanians, because the price of this political crisis will be paid by citizens,' he added.

Abrudean said that if PSD withdraws its support for Bolojan, the National Political Bureau of the National Liberal Party would continue to back the prime minister, as it has done so far.

'I believe it will decide to continue supporting Prime Minister Ilie Bolojan, and the resolution adopted at the last meeting clearly states that if PSD initiates this political crisis, meaning instability in Romania, PNL will no longer be able to remain in government with PSD. Decisions have already been made and will likely be reaffirmed in the coming discussions,' he said.

Asked whether PSD could find a 'puppet' prime minister within PNL, Abrudean dismissed the possibility.

'The position was clear and formally adopted by the National Liberal Party. Such a scenario would mean that PNL becomes an appendage of PSD, which cannot be accepted,' he said, adding that no 'serious' member of the party would support such a move.

Mircea Abrudean also noted that while PSD has the right to table a motion of no confidence, it would be 'at least strange' to do so against a government it has been part of.

'I do not believe any serious liberal would vote a no-confidence motion against their own prime minister, who is also the party leader,' Abrudean said.

Asked whether there was still any chance of reconciliation between PSD and PNL, as also hoped by President Nicusor Dan, Abrudean replied that he saw no such possibility if a no-confidence motion were to be filed.

The Senate speaker also said a minority government would not be suitable for Romania in the current context, although the situation would be analysed if it arises.

'For now, we are talking about political statements. The first step today will probably be PSD announcing the withdrawal of its ministers from the government. That does not automatically mean the government falls, as it can continue on an interim basis for up to 45 days. If a no-confidence motion is submitted by PSD, with the support of Alliance for the Union of Romanians, we will analyse the situation at that time,' he added.

Abrudean also expressed confidence that President Nicusor Dan would not support any plan that could plunge Romania into a deep political crisis with serious economic consequences. AGERPRES (RO - writing by: Alina Novaceanu; EN - writing by: Simona Iacob)

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