Reuters/Bucharest

Romania’s opposition yesterday rejected prime minister-designate Lucian Croitoru and his proposed cabinet, deepening a political crisis and putting at risk a 20bn euro ($29.49bn) IMF-led rescue package.

The opposition Social Democrats said they would support the quick approval of a 2010 budget to help Bucharest keep its aid deal afloat, but analysts were doubtful it would happen before a December 10 deadline set by IMF.

Since the collapse of the centrist cabinet last month, political forces have jockeyed for position before an expected December 6 presidential runoff vote, complicating budget talks and endangering disbursement of the aid.

The leu currency was virtually unchanged after the vote, and dealers said the market had already priced in Croitoru’s rejection. “Uncertainty will remain high until presidential elections,” said Ionut Dumitru, an analyst at Raiffeisen Bank.

The powerful opposition rejected Croitoru, a nominee of centrist President Traian Basescu, by a vote of 250-189. Its preferred prime minister is provincial mayor Klaus Johannis, an ethnic German who has won praise for major restoration work in the medieval Transylvanian city of Sibiu.

“The majority had its say. Having a majority of 65%, we will follow the golden rule of democracy and ask the president to propose Klaus Johannis as next premier-designate,” said Mircea Geoana, head of the Social Democrats (PSD) and a candidate in the presidential election.

Analysts say any new candidate for prime minister would struggle to create a cabinet before the first round of the presidential vote on November 22. They are concerned the Balkan country may run out of time to meet the terms for its next tranche of aid.

Croitoru, a policy adviser to the central bank governor, was a member of the Romanian team that negotiated the IMF/European Union/World Bank aid package.

The IMF has demanded Romania pass a tight budget by December 10, and Fund representatives in Bucharest may judge whether there is enough political support for one when their mission ends on November 9.

If Romania achieves this, it will receive a third, 1.5bn euro IMF loan tranche crucial to staving off further financial crisis and safeguarding the recession-hit economy.

Opposition parties united yesterday to say they would push to give a mandate for the budget to Emil Boc, who has stayed on as prime minister since his cabinet fell in October.

“It needs to pass parliament by December 10, so we have expressed readiness to back this,” Geoana said.

Obstacles remain. EU Monetary Affairs Commissioner Joaquin Almunia said on Tuesday Romania risked delays in receiving aid because it was hard to tell if it had met the terms of the deal.

Politicians also believe the political deadlock will not end until the result is known of the presidential election between Basescu, Geoana and liberal Crin Antonescu.

Most opinion polls show Basescu well in front of Geoana, although one poll on October 20 showed Geoana ahead. The winner can choose who will lead the next government.