The two parties to form the Cabinet announce ministers and their portfolios
Date: 19-12-2008The new government, made up of right-centrist Liberal Democrat Party (PD-L) and leftist Social Democrat Party (PSD) plus the Conservative Party (PC) and headed by PD-L leader Emil Boc, is pending the Parliament’s vote of confidence next week after announcing ministers today.
The Liberal Democrats said their nominees for the Cabinet’s seats are Gheorghe Pogea as finance minister, Adriean Videanu, the former Bucharest mayor until this summer, as economy minister, after the Economy and Finance Ministry, currently headed by Liberal Varujan Vosganian, was split into two.
A former minister of Transportation for two years in the previous government, Radu Berceanu, will take the helm again while the former interior minister, Vasile Blaga, defeated this summer in the race for the Bucharest mayor, will be the new regional development minister. The minister of defense was appointed Mihai Stanisoara, a presidential adviser while Gabriel Sandu will be the new communications minister. Elena Udrea was named for the tourism seat and Monica Iacob Ridzi, a member of the European Parliament, will head the sports and youth ministry. Last, but not least on the PD-L list of nominees is Theodor Paleologu for the culture seat. On the other hand the Social Democrats announced a former government member, Dan Nica, in the position of vice premier and former Bucharest mayor Gabriel Oprea as the future interior and administration minister. Two former ministers between 2000-2004 will take again the same portfolios, Marian Sarbu at the labor ministry and Ilie Sarbu at the agriculture one. The same thing happened in the case of the head of the Polytechnic University in Bucharest, Ecaterina Andronescu, who will take the lead of the education ministry again. The environment minister is a vice mayor of seaside city of Constanta, Nicolae Nemirschi and the health minister will be Ionut Bazac. One of the party’s most popular members, Cristian Diaconescu, was nominated for the foreign minister position, Constantin Nita for the small and medium sized companies seat and Victor Ponta will be in charge of the relationship with Romania’s Parliament. The two parties which will hold seats in the Cabinet divided between themselves 18 ministries, each wing controlling nine ministries. PD-L and PSD+PC set up a governing coalition with a two-thirds parliamentary majority on December 14 after the tie ballots on November 30 in which the former won the most seats in Parliament, while the latter received the most popular votes. However, the mission of this new government will not be an easy one with the economic crisis already taking its toll in Romania too. The rising unemployment coupled with the global shrinking demand, already affecting the companies here too, will be among the top priorities to handle in the next four years. Another task on the agenda is to narrow the budget gap on worries it could wide to over 3.5 percent of the GDP, a level exceeding the 3 percent threshold imposed under the Maastricht criteria. A consequence of the too wide deficit could be a bump in Romania’s way to the Eurozone which it plans to enter in 2014, seven years after joining the European bloc.The new government plans to cut current administration spending and implement fiscal changes such as differentiated value added tax (VAT).
Therefore, the basic food stuff will have a 5 percent VAT while for luxury goods the tax will stand at 25 percent, from the current 19 percent level for all products. Moreover, taxes on buildings, cars and boats will be raised. A unitary tax on gains made on the capital market will also be introduced. The current government, headed by Liberal leader Calin Popescu Tariceanu, whose party was the third runner in at the November 30 ballots and will most likely form the opposition, decided to suspend such taxes for 2009 to prop up the Romanian capital market affected by the global credit crunch. Another measure of the new Executive arm is to stimulate saving and temporarily eliminate taxes on incomes from bank deposits, including those of non residents. Also, companies spending profits on technological progress will be exempted from tax on profit. A fiscal novelty is a newly-created tax on excessive profits, called Robin Hood after the archetypal figure in English folklore known for robbing the rich to give to the poor and fighting against injustice and tyranny. Another measure is to plan a multi annual budget and raise efficiency of fiscal administrating by hiking the level of public collections, an idea often spoken of, but never implemented. Plus, increasing external financing by ensuring a good absorption of the European funds.
Details :
PDL nominees:
Finance Ministry: Gheorghe Pogea
Born in 1955, Pogea graduated from a technical faculty to become general manager of the Hunedoara Steel Plant (1997-2001). After 2001, he was general manger at SC "Marmosim" SA Simeria, a company owned by the former Bucharest mayor, Adriean Videanu. Videanu is also part of the current Government scheme.
Transport Ministry: Radu Berceanu
PDL vice president, Berceanu was a deputy ever after 1990. He also was Minister of Industry Trade (1998-1999) and Transport Minister (2006-2007). He was accused in several occasions of illegal affairs, from illegal VAT return and debts to the state budget to car trafficking.
Economy Ministry: Adriean Videanu
PDL executive president, entered politics since the early '90's. Bucharest mayor between 2005 and 2008.
Defense Ministry: Mihai Stanisoara
Deputy between 2004 and 2007, presidential counselor, president of the Defense, Public Safety and National Security Commission. Also former secretary general of the Defense Ministry (2000)
Regional Development and Homes Ministry: Vasile Blaga
Graduate of a technical aviation school and of the National Defense Institute; former Interior Minister (2004 - 2007) and Bucharest Senator. Also former Regional Customs Department chief in Oradea. Considered as the best candidate for the Interior Ministry, he was rather put aside during the PDL - PSD negotiations.
IT&C Ministry: Gabriel Sandu
PDL vice president, former import - export manager at Relaxa Mizil, then vice president with Elvila International (owned by the former Liberal leader Viorel Catarama), part of the dissident group that left Liberals to form the Liberal - Democrat Party, then merge with the Democrats into the exisitng Democrat - Liberal Party (PDL).
Culture Ministry: Toader Paleologu
Deputy elected in the 2008 parliamentarian elections, graduate of several important higher education institutions, as well visiting professor at others.Former ambassador to Danemark. Son of Alexandru Paleologu,liberal membre, one of the main civil society voices after 1990.
Youth and Sport Ministry: Monica Iacob Ridzi
Member of the European Parliament, deputy in the Romanian Parliament (2004 - 2007), vice president of the European Affairs commission in the House of Deputies.
Tourism Ministry: Elena Udrea
Deputy in the Romanian Parliament, former State Counselor, Secretary with the President's Chancellor, counselor for the Bucharest City Hall, also lawyer.
PSD nominees:
Vice Prime Minister: Dan Nica
PSD vice president, former IT&C Minister (2000 - 2004), deputy and member of the Industry Commission in the House of Deputies. Nica lost a lawsuit against the Coalition for a Clean Government, an NGO that claimed he doesn't fulfill the moral integrity standards to be elected. He was also accused of giving up one of the state's conditions in the privatization of Romtelecom, the former state-owned national wired telephony operator.
Labor, Family and Social Protection Ministry: Marian Sarbu
Former Labor and Social Solidarity Minister, born in 1958. Law school graduate.
Education Ministry: Ecaterina Andronescu
Former Education Minister, stirred a lot of controversies because of her decisions, which led the Romanian Education system to a state of confusion.
Health Ministry: Ionut Bazac
Medicine school graduate, Bazac was heard by the National Anti Graft Prosecution Office in a file investigating the illegal transfer of 5 billion lei to interim commercial companies, during the public procurement procedures for air cleansers in hospitals.
Agriculture Ministry: Ilie Sarbu
Former priest, accused by a former Securitate officer of accepting to collaborate with Ceausescu's political police and of involving in a secret services mission to Vatican. CNSAS (the body enabled to study the Securitate archives) decided that Sarbu was not a secret police collaborator, but further evidence seemed to re-confirm the rumors. Ilie Sarbu denies any collaboration.
Interior Ministry: Gabriel Oprea;
Repeatedly pointed at by the Coalition for a Clean Government. He is said to have leased a piece of land in downtown Bucharest, which eventually went to a controversial businessman, Gigi Netoiu.
Foreign Ministry: Cristian Diaconescu
Former Justice Minister, he has a diplomatic career.
Environment Ministry: Nicolae Nemirschi
Constanta vice mayor, known as the right hand of controversial mayor Radu Mazare, Nemirschi will lead one of the ministries that has access to a lot of EU funds.
SMEs, Trade and Business: Constantin Nita
According to some articles published by the Romanian newspapers, Nita's name was mentioned by Italian Mafia bosses during some tapped phone conversations as their representative in Romania.
Ministry for the Relationship with the Parliament: Victor Ponta
Former chief of the Government's Control Body in the Nastase Government, he was accused of covering up a governmental funds scandal involving the EU Accession Minister, Hildegard Puwak.
