Daring Protesters, Romania Picks Tainted Officials for Cabinet

(Bloomberg) -- Unperturbed by mass street demonstrations and European Union warnings over judicial reform, Romania’s ruling party is doubling down on its controversial agenda.

The Social Democrats finalized their third government in a year on Friday after picking a new prime minister last week. Accused by protesters and officials in Brussels of trying to weaken the rule of law, party leader Liviu Dragnea went further by backing people targeted in corruption probes to join the new cabinet.

“This policy trajectory will inevitably fuel a new round of public protests,” Tiziana Papa, country risk analyst at BMI Research, a unit of Fitch Group, said by email. “We expect the new cabinet to focus on the speedy passage of widely criticized judicial reforms.”

The selections risk further inflaming tensions in the Black Sea nation of 20 million people, where 500,000 demonstrators successfully repelled Social Democrat efforts to ease punishments for corruption a year ago. Also at stake is one of the continent’s fastest-growing economies, as well as ties with the EU, which is already at loggerheads with Poland and Hungary over democratic norms.

Premier-Designate Viorica Dancila was selected after her predecessor became the second premier in six months to fall out with Dragnea, who can’t take the job himself because of a criminal conviction. He calls Romania’s six-year clampdown on graft a witch hunt and says ministers don’t have “integrity issues.”

The new cabinet includes Deputy Premier Paul Stanescu and ex-EU Funds Minister Rovana Plumb. Stanescu is facing an abuse-of-office probe; an investigation into Plumb was halted after parliament refused to lift her immunity. Ex-Deputy Premier Sevil Shhaideh, also under investigation, will be secretary general, Hotnews.ro reported. All deny wrongdoing. Among other appointments, Eugen Teodorovici returns as finance minister.

“I set up this team with the aim of restarting Romania’s strategic partnerships, especially with the EU and the U.S.,” Dancila said Friday. She’ll outline her plans after Monday’s confirmation vote in parliament.

Protesters have joined President Klaus Iohannis in criticizing the political turmoil. They’re also worried about the judicial overhaul -- which the Constitutional Court has partly halted -- and a criminal-code amendment that lawmakers will discuss next month. Plans include:

• Holding judges personally responsible for incorrect rulings, seeking to recover damages from them
• Limiting presidential powers to nominate or reject chief prosecutors
• Decriminalizing some abuse-of-office offenses, easing sentences for corruption

European Commission advice to change course has gone unheeded. It’s urged parliament “to rethink the course of action proposed, to open up the debate in line with the commission’s recommendations.” Iohannis meets EU Commission Chief Jean-Claude Juncker and Council head Donald Tusk next Wednesday.

Dancila, a Dragnea ally, supported the judiciary amendments behind last year’s protests. But the latest proposals could be delayed by a presidential veto. Iohannis pledges to shield the rule of law, even if that risks suspension by a Social Democrat-controlled parliament. In that instance, the Dragnea-backed Senate speaker would assume the presidency temporarily.

The Social Democrats retain about 40 percent popularity after a raft of tax cuts and wage increases for state workers. But the protests, which attracted 100,000 people last Saturday, will maintain the pressure. The leu is near an all-time low, with more demonstrations scheduled for this weekend.

“We’ll be that constant pain in the neck every time they think about judicial changes that are only meant to help them escape prison,” said Madalina Onea, a 35-year-old IT specialist protesting in Bucharest.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net.

To contact the editors responsible for this story: Andrea Dudik at adudik@bloomberg.net, Andrew Langley, Michael Winfrey

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