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Romanian government in no confidence vote

13.10.2009

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The political turmoil in Romania has deepened after a motion of no confidence was passed in parliament.

As a result of the vote, the country's government and its prime minister, Emil Boc, have effectively been ousted.

However, Mr Boc and his liberal party will remain in control of the country until president Traian Basescu appoints a replacement, although they will have significantly reduced powers.

Some sources predict that Mr Basescu will simply reappoint Mr Boc.

Regardless of who is given the role, the new prime minister will have ten days to form a new cabinet which meets with parliamentary approval.

However, with President Basescu himself facing an election at the start of next month, analysts fear the turmoil could continue for some time, threatening attempts to get the nation's economy back on track.

Last week, Reuters reported that Romania could increase its VAT rate in order to help reduce its budget deficit.

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