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You're reading: Key political risks to watch in Romania
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The southeast European country, where nearly 3 percent of
the population live on $40 or less a month, had the fastest
economic growth rate in the European Union until a real estate
and credit bubble burst in 2008.

A new leftist prime minister, Victor Ponta, of the Social
Liberal Union (USL), is embroiled in a bitter dispute with the
centre-right semi-executive President Traian Basescu which has
delayed policymaking and hit markets.

Basescu is unpopular for his links with austerity policies,
which Ponta is seeking to ease to maintain his party’s high
popularity ratings ahead of a parliamentary election due in
November.

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