Romania announces reform of government
The prime minister of Romania has announced a major reshuffling of his cabinet and a change to his party's coalition strategy.
Calin Popescu's National Liberal Party dispensed of the services of ministers from the Democratic party and has instead opted to align itself with the Democratic Union of Hungarians.
The Social Democratic Party, the government's left-wing opposition, has said it supports the remerging of the coalition.
However, Jon Levy, analyst at the Eurasia Group, wrote in a research note that the move is likely to be a "temporary measure", the MarketWatch news agency reports.
Mr Levy added that the structural funds provided by the EU provide Romania with a "tremendous opportunity for infrastructure and regional development" - so long as they are effectively planned and managed.
Yesterday, Romania's National Commission for Prognosis announced that economic growth for 2007 should reach 6.5%.
In addition, inflation is also expected to decrease to 4.3% from 4.87% observed last year.
< Back to latest news