Romanian Far-Right’s Ukraine Threat a Danger, Finance Chief Says
(Bloomberg) -- Romania’s finance chief warned against the dangers of a far-right candidate who rejects the bedrock of the country’s European integration and threatens a rift with Ukraine ahead of a rescheduled presidential election in May.
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Finance Minister Barna Tanczos took aim at right-wing provocateur Calin Georgescu, who escalated his rhetoric last week by making claims on territory that is part of Ukraine. The candidate threw the Black Sea nation into political turmoil last year with his shock victory in a presidential ballot that has since been annulled and rescheduled.
“We have four months to explain to our voters what another path means for Romania — how dangerous it is to have an individual who wants to take territories from other countries,” Tanczos said in an interview Monday in Bucharest. Coming from a candidate for Romania’s highest office, such statements can be perceived as tantamount to a “declaration of war,” he said.
Despite condemnation from the European Union, particularly over accusations of Kremlin interference, and a top court decision to annul the presidential vote, Georgescu remains a frontrunner for Romania’s highest office.
An agricultural engineer and former diplomat, Georgescu has denounced NATO and praised Vladimir Putin — and has spread his message with a round of podcast interviews heavy with conspiracy theories.
In a discussion last week with a right-wing radio host, he suggested reclaiming territories that once belonged to Romania as part of any Ukraine war settlement, including some that are part of Ukraine. The remarks drew a swift rebuke from Kyiv.
Georgescu this week defended the comments, saying the reference to a now-lost “Greater Romania” was theoretical in a rapidly changing geopolitical environment — and that the country should avoid being caught on the “wrong foot” and acknowledge its “historical landmarks.”
Romania’s pro-European government led by Prime Minister Marcel Ciolacu has vowed to keep the nation of 19 million on a firmly Western path, a challenge made more difficult by budget cuts required to adhere to EU fiscal targets. Tanczos vowed to bring spending under control.
Rise of Far Right
Frustration in Romania with endemic corruption and the failure of mainstream parties to lift communities out of a cycle of poverty were on full display in November, when Ciolacu — presumed to be the presidential frontrunner — was eliminated in a contest that put Georgescu, until then a little-known independent with single-digit support, on top.
The finance minister, 48, who took up his position in December, said the administration will stand by its target to reduce the budget gap to 7% of economic output this year. Swift decisions informed by a monthly review to track spending and revenue levels will help him ensure success, he said.
“Last year we saw an upswing in the budget deficit and public debt and these were certainly a big problem,” Tanczos said, adding that warnings from credit companies S&P Global Ratings and Fitch Ratings will be heeded. “This is why the government took the difficult decisions to freeze pensions and wages” last month, he said.
Tanczos is a member of the Democratic Alliance of Hungarians in Romania, which represents an ethnic minority living predominately in Transylvania.
The finance chief said the government will move “gradually” toward narrowing the deficit to 3% of gross domestic product as Romania seeks to avoid a junk rating on its debt.
In an effort to hedge against bigger turbulence, Romania tapped international capital markets for the first time this year on Monday and sold €2.8 billion ($2.9 billion) in euro-denominated bonds and $1.25 billion in dollar debt.
The fight over fiscal policy in Romania takes place as the country confronts some of the highest borrowing costs in eastern Europe, with S&P and Fitch both warning about cutting the country’s credit score to junk status.
Tanczos, who has touted reduced allocations to the presidency and the parliament, struck a moderately optimistic tone, saying that when it comes to the potential impact on markets, Romania’s pro-Western orientation could not be easily changed.
Pro-European parties still have a majority in parliament, which maintains a constitutional check on the presidency, he said. Short-term market shocks could be overcome, the finance chief added.
As a staunch NATO member, Romania will keep defense spending above 2% of GDP, but further increases exceed its budget capacity — and any discussion within the alliance must consider solutions for countries unable to make such a leap overnight, Tanczos said.
--With assistance from Andras Gergely.
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