Simmering government crisis, uncertainty about further political developments poses risk for RON, says Commerzbank

The simmering government crisis and the uncertainty about further political developments (early elections etc.) remains a risk factor for the Romanian leu, according to the latest research report from Commerzbank.

Since the smaller coalition partner ALDE resigned from government in late August the governing Social Democrats no longer hold a majority in the Romanian parliament.

However, so far no majorities have been found nor has the minority government been legitimised with the help of a vote of confidence. A vote of no confidence against Viorica Dancila’s government was not taken either, as the opposition does not hold the required majority of 233 votes.

Meanwhile, it seems that the cross-party efforts to garner support for this vote seems to have paid off: according to media reports the motion of no confidence will be presented at the end of this week or early next week and might be voted on as early as late next week, the report added.