Romanian parliament torpedoes PM nominee, cabinet

By Luiza Ilie

BUCHAREST (Reuters) - Romania's opposition rejected prime minister-designate Lucian Croitoru and his proposed cabinet on Wednesday, deepening a political crisis and putting at risk a 20 billion euro ($29.49 billion) IMF-led rescue package.

The opposition Social Democrats said they would support the quick approval of a 2010 budget to help Bucharest keep its aid deal afloat, but analysts were doubtful it would happen before a Dec. 10 deadline set by the Fund.

Since the collapse of the centrist cabinet last month, political forces have jockeyed for position before an expected Dec. 6 presidential runoff vote, complicating budget talks and endangering disbursement of the aid.

The leu currency was virtually unchanged after the vote, and dealers said the market had already priced in Croitoru's rejection. "Uncertainty will remain high until presidential elections," said Ionut Dumitru, an analyst at Raiffeisen Bank.

The powerful opposition rejected Croitoru, a nominee of centrist President Traian Basescu, by a vote of 250-189. Its preferred prime minister is provincial mayor Klaus Johannis, an ethnic German who has won praise for major restoration work in the medieval Transylvanian city of Sibiu.

"The majority had its say. Having a majority of 65 percent, we will follow the golden rule of democracy and ask the president to propose Klaus Johannis as next premier-designate," said Mircea Geoana, head of the Social Democrats (PSD) and a candidate in the presidential election.

Analysts say any new candidate for prime minister would struggle to create a cabinet before the first round of the presidential vote on Nov. 22. They are concerned the Balkan country of 22 million may run out of time to meet the terms for its next tranche of aid.

Croitoru, a policy adviser to the central bank governor, was a member of the Romanian team that negotiated the IMF/European Union/World Bank aid package.