In Romania, the national currency has fallen to a record low, with the euro trading at 5.1222 lei, down 0.45% from the previous rate of 5.0991 lei. This comes amid the possible coming to power of the far-right presidential candidate George Simion, reports Euractiv, writes UNN.
Details
On Tuesday, the Romanian currency crossed the psychological threshold of 5 lei after the first round of the presidential election, in which the far-right candidate won, and the resignation of the government led by Social Democrat Marcel Ciolacu.
In an attempt to curb the fall of the currency, the National Bank of Romania (BNR) intervened in the market, which led to a noticeable increase in interest rates. The three-month ROBOR index rose to 7.25%, the highest level since January 2023. Over the past few days, the central bank has spent at least 7 billion euros to stabilize the currency.
Despite attempts to soften his rhetoric and position himself as the "Romanian Meloni," George Simion has so far failed to dispel public or investor concerns. Simion announced plans to form a government consisting of the far-right parties AUR and POT if he wins the second round of the presidential election on May 18.
A poll published on Wednesday shows Simion with 38.9% support, compared to Nicusor Dan's 31.3%. Another 14.7% of respondents were undecided and 8.9% refused to answer.
According to the Verified Institute, if those who are undecided and those who did not answer are not taken into account, the results indicate that Simion could receive 55.4% of the votes, and Dan - 44.6%.
The possibility of early elections has caused concern in the Romanian business community, as the process could take several months, which will prolong political instability.
The interim Minister of European Funds, Marcel Bolos, said on Thursday that there are no discussions regarding a potential agreement with the International Monetary Fund (IMF). He added that the IMF's participation is usually accompanied by "tougher reforms" than those outlined in Romania's National Recovery and Sustainability Plan.
He also expressed hope that this emotional reaction of markets and investors will soon subside.
Romania currently has the highest budget deficit in the European Union - 8.65% of GDP in 2024, compared to 5.61% in 2023. The cost of servicing public debt remains very high due to the country's weak credit ratings (Fitch: BBB-, S&P Global: BBB-, Moody's: Baa3).
Addendum
The leader of the first round of the presidential elections in Romania, George Simion, said that Ukraine should compensate for the assistance provided by his country, in particular for the Patriot system.
Romania will not give a single cent to another country, but will focus on its own population