Why Romania’s new leader is already facing a domestic political storm

Good morning. News to start: Romania’s new president has told the Financial Times that Bucharest will back Nato’s new 5 per cent spending goal even while cutting its record public deficit, as Nicușor Dan seeks to reassert his country’s pro-western orientation.

Today, our correspondent in Bucharest explains the domestic political mess that Dan is grappling with, and Laura brings us the latest on the probe into alleged corruption by Huawei in the European parliament.

‘Cold shower’

While Romania’s centrists erupted into relieved cheers this week following the election of pro-EU Nicușor Dan as president over his Eurosceptic rival, the fiendishly tricky task of forming a stable government has brought them firmly back to reality, writes Marton Dunai.

Context: Former Bucharest mayor Dan defeated George Simion, a far-right populist, in Sunday’s presidential run-off. Both men are anti-establishment figures, underscoring the scale of discontent at the country’s ruling elite.

Still, Romania’s politicians are now striving to rebuild the government that fell apart when Simion and Dan beat mainstream candidates to the second round. But deep divisions between the four-party majority coalition are stymying those efforts.

EU and Nato partners that were worried about Simion’s potential presidency, as well as a looming financial crisis in the Balkans’ largest economy, were relieved by the outcome. But attention has rapidly shifted to the chronically fragile domestic political scene, complicating the task of the president-elect to nominate a prime minister who would stick.

The main issue is the indecision of the largest party, the social democrat PSD, over whether to participate in a new government or retreat into opposition to regroup — and avoid the unpopular decisions that are sure to follow as the country faces painful budget reforms.

A majority of PSD leaders want to stay out of government and provide external support to a minority cabinet that would likely be ill-equipped to push through difficult decisions. But the party has put off a decision and opted to negotiate with peers and Dan first — leaving open the option of joining the government after all.

“This situation was created by us, we should be part of the solution,” PSD senator Victoria Stoiciu told the FT. Although her opinion is not shared by a majority in the PSD yet, she says the party will have to bless the government’s moves, so “we will be part of the game anyway; might as well be in government”.

Hunor Kelemen, leader of the ethnic Hungarian party UDMR, which also plans to be in government, said there needs to be something Romania has never had: a detailed coalition agreement on every move they plan to make, especially on the budget and any austerity programme.

Important as the coming years will be, “we are facing a highly unpopular period, so this has risks to all of us,” Kelemen said.

Chart du jour: Delayed

Financing, regulation and different rail systems mean potential Eurostar competitors are years away from launch.

Closer look

Belgian authorities have requested lifting the immunity of five European lawmakers to proceed with investigations into alleged corruption involving Chinese tech giant Huawei, writes Laura Dubois.

Context: The Belgian federal prosecutor’s office in March launched an investigation into suspected bribes — including football tickets and smartphones — allegedly paid by Huawei to parliament staffers in exchange for advancing the company’s interests.

At least eight people have so far been charged in the probe for corruption, money laundering and membership of a criminal organisation, the prosecutor said last month.

The probe initially centred on Huawei lobbyists and parliament staffers, but now sitting parliamentarians are in the crosshairs.

European parliament president Roberta Metsola yesterday announced during the plenary session that the authorities requested lifting the immunity of three centre-right MEPs from Italy, Fulvio Martusciello, Giusi Princi, and Salvatore De Meo, as well as Maltese Socialist Daniel Attard and Bulgarian Liberal Nikola Minchev.

Martusciello is among the signatories of a 2021 letter promoting Huawei’s interests, which is at the heart of the probe as investigators look into whether the signatories received compensation for their support. Martusciello’s former assistant has been implicated in the probe. The MEP did not respond to a request for comment.

Minchev, whose former assistant is under investigation, said he had “no relation to any illegal activities” and that he would co-operate with the probe. Attard wrote on Facebook earlier this week that he rejects “any implication of wrongdoing” and would also co-operate.

De Meo said: “I have never taken any position in favour of Huawei.” Princi did not respond to a request for comment.

The requests to lift the MEPs’ immunities still need to be considered by parliament, which could happen as soon as next month. The prosecutor’s office declined to comment.

What to watch today

1. EU internal market and industry ministers meet.

2. Nato secretary-general Mark Rutte visits Norway.

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